The reality is that if there is to be collective international action in the face of a crisis, international financial institutions, with formal mandates and balance sheets, will remain very important. Focus on adapting the IMF to 21st century needs has intensified in recent years.
The comprehensive assessment is made up of two core components. The first is the asset quality review, or AQR. To stay with the medical metaphor, the AQR is rather like looking at an X-ray image – it allows supervisors to detect any nasty surprises that might be lurking on bank balance sheets. The second component is a stress test.