Special-purpose entities are not inherently dangerous, according to a report released Tuesday.

The legal structures created by banks to hold and finance securities have been blamed repeatedly for worsening the financial crisis.

But a report by the Joint Forum, a consortium of international financial regulatory authorities, said the entities present both risks and benefits to the financial system.

"The usage of SPE structures is not inherently problematic in and of itself," the report read. "In instances where parties to an SPE possess a comprehensive understanding of the associated risks and possible structural behaviors of these entities under various scenarios, they can effectively engage in and benefit from using SPEs."

The report described risk management strategies for the safe use of SPEs and directed regulators to monitor them closely and devise standardized procedures and definitions for their governance.

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