In 2023, Belgium underwent the five-yearly assessment of its financial sector and of its regulation under the International Monetary Fund's Financial Stability Assessment Program (FSAP). The FSMA was closely involved in this exercise in the framework of its statutory supervisory mandates and welcomes the IMF's findings.
The final report of the mission was approved and published by the IMF Board and contains the findings and recommendations of the IMF team that led the mission. In this report, the IMF recognizes the quality of financial sector supervision in Belgium.
The mission found that the FSMA has a well-developed framework for product and conduct supervision of banks, as well as a comprehensive Belgian regulatory framework for the conduct supervision of insurance companies.
Based on a liquidity stress test, the mission found that the Belgian investment fund sector, where liquidity management tools are widely available, is resilient and able to absorb large shocks. The FSMA will conduct this type of test periodically, as recommended by the IMF, to quickly identify any structural vulnerabilities in the investment fund sector.
The mission noted that within the Belgian twin peaks supervisory model, the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) work closely together. In this regard, the NBB and the FSMA have already followed up on the Fund's recommendation to expand data-sharing arrangements for investment funds.
The FSMA particularly appreciates the joint work with the IMF teams and the exchange of expertise during the mission and will take forward the report's recommendations.