Fostering conditions that promote the resilience and stability of financial systems is critical to the World Bank Group’s mission of reducing extreme poverty and promoting shared prosperity. Enduring financial crises or maintaining underdeveloped financial systems prevent countries from achieving their economic goals. The World Bank helps mitigate the impact of crises, especially on the developing and most vulnerable countries; builds more resilient banking systems by promoting crisis prevention and by making banking crises less disruptive; monitors financial systems to identify vulnerabilities and develop appropriate policy responses; and strengthens bank supervision.

What We Do

The Banking Regulation, Supervision and Crisis Management business line helps client governments and the global community in strengthening financial-sector oversight and crisis preparedness/crisis management; promotes an enabling environment for bank intermediation; and enhances the capacity of the authorities to deal with financial stress.  We do this primarily through the establishment of a well-functioning banking sector and effective bank-regulation, supervision and resolution frameworks.  

Financial Sector Diagnostics 

We provide World Bank Group client countries with programs that assess their financial strengths and diagnose their financial weaknesses. The team undertakes assessments, develops diagnostic tools and provides appropriate policy responses. We also conduct stress tests and crisis-preparedness simulations as part of the joint World Bank Group-IMF Financial Sector Assessment Program (FSAP). We also contribute to the design, assessment, implementation and impact monitoring of international standards on banking supervision, deposit insurance and resolution in coordination with the IMF, the Financial Stability Board (FSB) and various standard-setting bodies.  

Technical Assistance 

We provide technical assistance and policy advice to our client countries’ financial-sector authorities to address identified gaps. The main focus areas are risk management and crisis preparedness, financial-sector monitoring, Islamic finance, the strengthening of banking regulatory and supervisory capacity, the design of macroprudential frameworks, the reform of state-owned banks and the establishment of effective deposit-insurance programs and financial safety nets.  We also support authorities in developing and implementing comprehensive restructurings of their countries’ banking sector, mostly in the context of our lending operations.

Policy Advice

The team provides policy advice and implementation support to national financial-sector authorities. We help countries strengthen their regulatory and supervisory regimes; become better prepared to deal with financial stress; and become able to adhere to internationally agreed-upon principles for banking supervision.  


About 155 countries have participated in the FSAP Program, and more than 300 FSAPs have been conducted since the inception of the program in 1999. That has helped client counties identify vulnerabilities in their financial systems and develop appropriate policy responses.

Crisis Preparedness/Crisis Resolution is a unique set of products that has proven to be in great demand among client countries. The World Bank Group is a leader in delivering crisis-simulation exercises: More than 30 have been conducted since 2009, and several of them have been multi-jurisdictional, with overall coverage of more than 50 countries so far. Crisis simulations allow financial-sector authorities to practice and refine their established crisis-response arrangements. They also can be used (and in some jurisdictions have already been used) to discover the most appropriate governance arrangements required to deal with emerging new threats, such as highly disruptive, stability-threatening cyber-incidents derived from the financial sector’s intensive dependence on IT systems.

Who We Work With

In our client countries, we work with financial-sector authorities, central banks, supervisory and regulatory authorities, deposit-insurance authorities, Finance Ministries, and regional development banks and regulatory agencies. Globally, we work with multilateral organizations to develop global standards and best practices for financial systems, including the FSB, the IMF, the Basel Committee on Banking Supervision, and the International Association of Deposit Insurers (IADI). 


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