It is heartening to note that the IMF has begun covering in its Global Financial Stability Report, in addition to the SWFs, the issues relating to hedge funds and private equity funds. Public policy initiatives on SWFs The OECD approach in regard to SWFs is that international co-operation can build mutual trust and keep markets open.
The work of the ESRB, which is founded on close cooperation between central banks, national supervisory authorities, the European Supervisory Authorities (ESAs) and policy makers, will contribute to the mitigation of systemic risk within the financial system. However, despite the significant progress in institutional architecture at the European level, crucial areas within global and national financial systems remain fragile and vulnerable to unexpected shocks.