Today, the U.S. Treasury and various other U.S. financial system supervisors and regulators, including the Federal Reserve, Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corporation, Securities and Exchange Commission, Commodity Futures Trading Commission, and National Association of Insurance Commissioners, submitted financial sector self-assessment reviews for banking, securities, insurance, and payment systems to the International Monetary Fund (IMF). The self-assessments evaluate U.S. observance and compliance with four international standards and core principles, including:
- Core Principles for Effective Banking Supervision (Basel Committee on Banking Supervision);
- Objectives and Principles of Securities Regulation (International Organization of Securities Commissions);
- Insurance Core Principles (International Association of Insurance Supervisors); and
- Recommendations for Securities Settlement Systems (Committee on Payment and Settlement Systems and the International Organization of Securities Commissions).
These self-assessments are utilized in the U.S. Financial Sector Assessment Program (FSAP) review, conducted jointly by the IMF and the U.S. Treasury and the various U.S. financial sector supervisors and regulators. The FSAP, to which the U.S. committed its participation during its 2006 Article IV review conducted by the IMF, presents an “integrated analysis of stability and development issues and generally includes financial sector analysis, stress testing, an assessment of the observance and implementation of international standards and codes, and a review of specific stability and development issues.” In June, the IMF completed its annual Article IV Consultation with the U.S. and revealed “major weaknesses in the U.S. regulatory and resolution frameworks.”