Review on Recent Application of Financial Sector Assessment Program (FSAP): Has FSAP Adopted Proposed Islamic Financial Sector Assessment Program (IFSAP) Template?

Abstract

The Financial Sector Assessment Program (FSAP) states that a sound and well functioning financial system is supported by three pillars to sustain orderly financial development and stability which relate to the macroeconomic factors, regulatory and supervisory framework, and the infrastructures. Three years after the proposed paper, there is an urgency to review to what extent FSAP has adopted Proposed Islamic Financial Sector Assessment Program (IFSAP) Template. This note will try to review the FSAP on some selected countries and analyze the influence of proposed IFSAP to the FSAP. This result of this review shows that the IMF-World Bank has adopted in a limited way the proposed template by IRTI-IDB. Overall, there is a very limited significance of change in the of FSAP model.