Financial Sector Regulation and Reforms in Emerging Markets: An Overview
This paper provides an overview of the complex conceptual and practical challenges that emerging market economies face as they attempt to reform their frameworks for financial regulation. These economies are striving to balance the quest for financial stability with the imperatives of financial development and broader financial inclusion. I argue that these objectives can in fact reinforce one another. I also discuss aspects of macroeconomic policies and cross-border regulation that have implications for financial stability and the resilience of the financial sector in emerging markets.
This paper is the overview chapter for a forthcoming book on Financial Sector Reforms and Regulation in Emerging Markets, eds. Masahiro Kawai and Eswar Prasad, Brookings Institution Press, 2010. I am grateful to Parul Sharma for her comments. I thank the Asian Development Bank and Asian Development Bank Institute for supporting this research. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
“Financial Sector Regulation and Reforms in Emerging Markets: An Overview,” in Financial Sector Reforms in Emerging Markets , edited by Masahiro Kawai and Eswar Prasad, Brookings Institution Press, 2011. NBER Working Paper No. 16428 .