20.4 The assessment methodology can be used in multiple contexts:

(1) self-assessments performed by banking supervisors themselves;

(2) IMF and World Bank assessments of the quality and effectiveness of supervisory systems, for example in the context of the FSAP; [The regular reports by the IMF and the World Bank on the lessons learnt from assessment experiences as part of FSAP exercises constitute a useful source of information, which has been used to improve the Core Principles.]

(3) reviews conducted by private third parties such as consulting firms; or

(4) peer reviews conducted, for instance, within regional groupings of banking supervisors.

20.5 Whatever the context, the following factors are crucial:

(1) A recent self-assessment of compliance with the Core Principles is an essential exercise for supervisors to have undertaken, since it will provide an important indicator of where techniques and practices need to be strengthened.

(2) To promote objectivity, compliance with the Core Principles is best assessed by two suitably qualified external individuals with strong supervisory backgrounds who bring varied perspectives so as to provide checks and balances.

(3) A fair assessment of the banking supervisory process cannot be performed without the genuine cooperation of all relevant authorities.