Finally, an improvement in the insight of authorities into the hedge fund industry is urgently needed in order to better assess vulnerabilities in the broader financial system. 3.2  Monetary policy  So far, I have focused on regulatory issues that are relevant for the stability of the financial system.
On the other hand, if non-banks are involved more heavily, the dangers of a spreading financial crisis in the sense of a systemic risk also tend to be smaller. The IMF should also minimise its provision of financial assistance not least because these are public resources which it is distributing. It should therefore itself bear only the absolutely necessary portion of a financing package.