The problem of financial regulation has returned to centre stage in the wake of the turbulence caused by global financial volatility. This volume responds to contemporary developments by presenting an important restatement of the purposes and objectives of financial regulation. The authors analyse the scale, nature costs of regulatory problems around the world, and focus on issues requiring special attention and policies. Key topics covered include: the need to recast the form of regulation incentive structures for financial regulation new techniques for risk and crisis management regulation in emerging countries the appropriate structural form for financial regulation prospects for financial regulation in the future. Published in association with the Bank of England, this volume will be a vital resource for students of finance, banking and development, and for all those involved in the formulation of policy.