Why in News:

• IMF head of Monetary and Capital Markets Tobias Adrian said there continues to be a high stock of non-performing assets (NPAs) in India, and there has been some progression.

Details:

• The Global Financial Stability Report (GFSR) is a semi-annual report by the International Monetary Fund (IMF) that assesses the stability of global financial markets and emerging- market financing. The GFSR provides an assessment of balance sheet vulnerabilities across financial and non-financial sectors in advanced and emerging market economies.
• The level of capitalisation of some banks, particularly government-owned banks should be supported. This is also one of the recommendations of the Financial Sector Assessment Program
• Financial vulnerabilities in China remain high, and the authorities face a difficult trade-off between supporting near-term growth, countering adverse external shock, and containing leverage through regulatory tightening

What is the Global Financial Stability Report?

• The Global Financial Stability Report (GFSR) is a semi-annual report by the International Monetary Fund (IMF) that assesses the stability of global financial markets and emerging- market financing.
• It is released twice per year, in April and October.
• The GFSR focuses on current conditions, especially financial and structural imbalances, that could risk an upset in global financial stability and access to financing by emerging-market countries.
• It emphasizes the ramifications of financial and economic imbalances that are highlighted in one of the IMF’s the World Economic Outlook.
• GFSR usually include systemic risk assessments in worldwide financial markets, worldwide debt management, emerging economic markets and current economic crises that could affect finances worldwide.

Financial Sector Assessment Program (FSAP)

• The Financial Sector Assessment Program (FSAP), established in 1999, is a comprehensive and in-depth assessment of a country’s financial sector.
• FSAPs analyze the resilience of the financial sector, the quality of the regulatory and supervisory framework, and the capacity to manage and resolve financial crises.
• FSAPs produce recommendations of a micro- and macro-prudential nature, tailored country-specific circumstances.
• The FSAP is a key instrument of the Fund’s surveillance