IMF requires financial check-up for 25 leading economies

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The International Monetary Fund (IMF) announced on Monday that it would require 25 major economies with financial sectors that have the greatest impact on global financial stability to go through in-depth mandatory financial stability exams every five years to prevent possible global financial turmoil.

The 25 economies list included developed and developing ones like China, the United States, Britain, Australia, Japan, France, Germany, Italy, India, Brazil, Canada and among others, said the Washington-based agency.

"This group of countries covers almost 90 percent of the global financial system and 80 percent of global economic activity. It includes 15 of the Group of 20 member countries, and a majority of members of the Financial Stability Board, which has been working with the IMF on monitoring compliance with international banking regulations and standards," the IMF said in a statement.

The Executive Board of the IMF had approved making financial stability assessments under the Financial Sector Assessment Program (FSAP) a regular and mandatory part of the Fund's surveillance for members with systematically important financial sectors, according to the statement.

"The decision adopted on September 21 this year to raise the profile of financial stability assessments under the FSAP for members with systematically important financial sectors is a recognition of the central role of financial systems in the domestic economy of its members, as well as in the overall stability of the global economy," said the statement.

The 187-nation international financial institution has asked all of its members to conduct an annual economic health exam, known as an Article IV consultation.

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