FSAP

Claire Jones

The IMF and the World Bank will regard the publication of its report on the first Financial Sector Assessment Programme, or FSAP, for China on Tuesday as something of a triumph.

Pre-crisis, China (along with the US) refused to undergo the programme, which serves as a health check on a country’s financial network.  Now, they are compulsory for those financial networks deemed systemically important.

People's Bank of China. Image by Getty.

People's Bank of China. Image by Getty.

That’s to be applauded; the more that is done to warn of risks to financial stability, the better. But the People’s Bank of China’s response to the exercise highlights its limits. Read more