Financial Sector Assessment Program (FSAP) – Monetary Policy Transparency Module

The FSAP (Financial Sector Assessment Program) aims to evaluate and assess the financial systems of IMF/World Bank member countries.  Main areas evaluated under the FSAP include resiliency, fragility, and risk in each area of the financial sector.  In addition, the FSAP also assesses the overall structure of the financial system, including the conduct of monetary policy, as well as the legal and institutional framework of the central bank, and any other factors that affects the financial system.

The FSAP is a joint IMF and World Bank effort introduced in May 1999. Supported by experts from a range of national agencies and standard-setting bodies, work under the program seeks to identify the strengths and vulnerabilities of a country's financial system in order to determine how key sources of risk are being managed, to ascertain the sector's developmental and technical assistance needs, and to help prioritize policy responses.

The Bank of Thailand took part in the FSAP program between January to June 2007.

The assessment of monetary policy transparency is based upon standards set forth in the IMF’s Code of Good Practices on Transparency in Monetary and Financial Policies, with focus on four main areas:

Principle I:         Clarity of Roles, Responsibilities, and Objectives of Central Banks for Monetary Policy

Principle II:        Open Process for Formulating and Reporting Monetary Policy Decisions

Principle III:       Public Availability of Information on Monetary Policy

Principle IV:      Accountability and Assurance of Integrity by the Central Bank