In view of the overarching rules of economic governance, it should be clear that Fund financing must not  BIS Review 43/2005  3  distort the functioning of the market mechanism. Fund policies should instead leave the market participants fully responsible for their own decisions.
Nonetheless, the banks can be exposed to significant risks, and the review is intended to assess the scale of these risks and the effectiveness of the banks' associated risk-management practices. The Federal Reserve's efforts in this area are being coordinated with the OCC and the SEC. 4.