Financial sector to get IMF/World Bank review

A high-powered team from the International Monetary Fund (IMF) and the World Bank will do a financial-sector assessment programme (FSAP) in TT later this year.

An FSAP is a comprehensive and in-depth assessment of a country's financial sector. It covers not just stability but also longer-run development aspects.

Central Bank governor Alvin Hilaire made the announcement today at the Financial Stability Report release at the bank in Port of Spain. He clarified that this is not the annual Article IV consultation by the IMF, in which a team is invited to the country to discuss and evaluate economic policy.

The last time TT had a full FSAP mission was in 2005 and a limited scope stability assessment in 2010.

In a presentation today, Hilaire said these missions help strengthen the regulatory framework and financial system oversight. Past FSAP missions have helped in advancing financial-sector legislation, implementing risk-based supervision for banks, and improving the anti-money laundering/combatting terrorist financing networks.

Some areas of focus for this year's mission include banking, insurance, pensions, payment systems, capital markets, and risk-based supervision.