Multitasking for the Sectoral Reviews
Having separate experts for sectoral stability and development analysis will overburden the country and impose excessive administrative costs. It will also result in a team that is too large to allow for adequate synthesis of what are indeed overlapping issues. Therefore, there seems little merit in including a large team of “development specialists” alongside prudential specialists. In the case of many sectors, such as insurance and capital markets, the same expert who analyzes stability aspects should also be able to assess developmental aspects. This arrangement will not only avoid duplication but also guarantee consistency across the two dimensions. Staffing the assessment of the sectors should be designed with this multitasking in mind.
In the case of banking, always the most important sector, FSAP missions have typically included two BCP assessors and one or two persons working on stress testing. Teams for low-income countries also should include banking specialists who can provide adequate analysis of the competitive structure of banking, the range of services provided, and the cost and efficiency of their provision.