The Financial Systems Practice at the Financial and Private Sector Development Vice Presidency at the World Bank provides financial sector diagnostics, policy advice, and advisory services to national financial sector regulatory and supervisory authorities to help build strong and efficient financial systems, thereby contributing to financial sector development and stability, economic growth, and poverty reduction.
The Financial Systems Practice aims to foster the stability, integrity and sustainable development of financial systems, by pursuing four strategic goals: i) improving the monitoring of financial systems to identify vulnerabilities; ii) strengthening prudential oversight and crisis preparedness; iii) safeguarding financial market integrity; and iv) supporting the sustainable development of banking systems. The ultimate aim is to reduce the frequency with which financial crises occur and minimize the adverse effects when they do occur.
The Financial Systems Practice includes two services lines:
The Financial Architecture and Banking SystemsService Line interacts with standard-setters to influence the global regulatory agenda. In addition, it uses a combination of diagnostic assessments, policy advice and technical assistance to strengthen banking regulation and supervision, enhance frameworks for crisis preparedness and management, as well as support the development of banking systems in client countries.
TheFinancial Market IntegrityService Line provides diagnostic assessments, policy advice and technical assistance, on issues relating to anti-money laundering, combating the financing of terrorism, governance and anti-corruption. It also works to promote transparency by designing and implementing asset disclosure regimes for public officials in client countries.
The Practice also houses theFinancial Sector Reform and Strengthening (FIRST) Initiative which is a multi-donor trust fund managed by the World Bank, financing technical assistance aimed at strengthening financial sectors in low and middle income countries.