WASHINGTON: To prevent possible global financial turmoil, the IMF (International Monetary Fund) announced on Monday that it would require 25 major economies with financial sectors that have the greatest impact on global financial stability to go through in-depth mandatory financial stability exams every five years.

The Washington – based agency said, the 25 economies list included developed and developing ones like Canada, Brazil, India, Italy, Germany, France, Japan, Australia, Britain, the United States, China and among others. The IMF said in a statement, “This group of countries covers almost 90 percent of the global financial system and 80 percent of global economic activity. It includes 15 of the Group of 20 member countries, and a majority of members of the financial Stability Board, which has been working with the IMF on monitoring compliance with international banking regulation and standards”.

According to the statement, the Executive Board of the IMF had approved financial stability assessment under the FSAP (Financial Sector Assessment Program) a regular and mandatory part of the Fund’s surveillance for members with systematically important financial sectors. The statement said, “The decision adopted on September 21 this year to raise the profile of financial stability assessments under the FSAP for members with systematically important financial sectors is recognition of the central role of financial systems in the domestic economy of its members, as well in the overall stability of the global economy”. To conduct an annual economic health exam, which is also known as an Article IV consultation the 187- nation international financial institution has asked all of its members.