An FSAP draws up profiles of the strengths and weaknesses of a financial sector of a country. This initiative is not only geared towards EMCs or developing countries, but also towards industrial countries. Austria, for example, is currently conducting an FSAP. Another key area is economic and financial standards and codes, which are formulated in collaboration with public and private sector institutions.
This finding significantly increases the “consumption insurance premium", as shown in a study I conducted with Bansal and Kiku (2010). An examination in the forthcoming Financial Stability Report tested the effect of the intensity of the financial cycle on periods of slowdown in Israel.