2009 Reports
Regulation of Financial Sector in Developing Countries: Lessons From the 2008 Financial Crisis
This chapter aims to draw some practical lessons and raises some issues from the 2008 financial crisis for regulation of financial sectors in developing countries. At the time of writing, the crisis is far from over and the aftermath is still unclear. The chapter is divided into five sections. The first section gives an overview of considerations that are important in drawing lessons from the crisis, especially from the point of view of developing economies. The second section addresses the major issues of scope for, and limits to, counter-cyclicality in regulation, in view of the widely perceived need for such an approach to avoid similar crisis in the future. The third section addresses an issue, which has been in focus since late 2008—the idea of comprehensiveness in the regulatory scope of the financial sector. The fourth section explores possible improvements in regulatory structures that are provoked by the recent crisis. The concluding section lists several broader issues that need to be kept in view while considering improvements in regulation of financial sectors for the future.
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More About This Work
- Academic Units
- Initiative for Policy Dialogue
- Publisher
- Initiative for Policy Dialogue
- Series
- Initiative for Policy Dialogue Working Paper Series
- Published Here
- April 8, 2011