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FSI (Financial Soundness Indicators)  
 

In early 2000, the International Monetary Fund (IMF) initiated the Financial Soundness Indicators (FSI) project in response to the financial market crises of the late 1990s. This initiative is an attempt to define, with a maximum of consistency, macroprudential indicators for assessing national financial systems in numerous countries and make them available to the general public.

The primary aim of the FSIs is to help make financial systems more transparent, especially in those emerging markets and developing countries for which the availability of such data has hitherto been limited.

In addition, crisis prevention improves through a regular assessment of the situation and risks based on these indicators. A request for, and regular publication of FSI's that followed by member countries, broaden opportunities for continuous monitoring of financial stability and the ability to identify undesirable developments at an early stage. Against this background, the IMF also uses these indicators in its Article IV consultations and Financial Sector Assessment Programs (FSAP) to assess the stability of its members’ financial systems.

These indicators are grouped into: "core set", which includes basic indicators for the banking sector and is compulsory for the participating countries, and "encouraged set", which also includes, apart from additional supplementary indicators for the banking sector, selected indicators characterising other financial and non-financial institutions, households, market liquidity and the real estate market.

Contributing to the financial soundness indicators database (IMF) is voluntary. However if a country does agree to provide information, it binds itself to regularly update the data and metadata that it provides. Each country may choose the frequency with which it provides its data in relation to the availability of that data. You can find a general presentation of the financial soundness indicators at the website of the International Monetary Fund (http://data.imf.org/FSI).

The Bank of Albania is involved in this International Monetary Fund project and provides all the data of core set (12) and as well as covers considerably encouraging indicators (15 out of 28) relating to the banking sector with a monthly frequency. The indicators sent to the International Monetary Fund will also be regularly published on the website of the Bank of Albania together with a concise methodology containing the basic differences to the methodology of the International Monetary Fund and the main differences to similar indicators used by the Bank of Albania in their materials. Data will be updated at the latest 35 days after the end of month or within 60 days of the end of the relevant year.

It cannot be entirely ruled out that temporary partial differences may occur between the values of the financial stability indicators presented on the BoA website and the values presented on the IMF website, as any updates to the FSIs (e.g. following an audit) are published on the IMF website with a slight lag.

The results for Albania are published (http://data.imf.org/regular.aspx?key=61404590) . In addition, you will find methodological notes to better understand how the indicators were derived for Albania. Further metadata for Albania as well as the findings and metadata for other countries are available on the IMF website.

 

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