The global economy is recovering from the worst financial crisis since the great depression. The
recovery, however, is fragile and uneven. The financial crisis has brought a number of lessons to the fore.
First, financial regulation needs to stay ahead of the curve to avoid falling behind financial innovations
and new business models that emerge. This requires continuous sharpening of regulatory and supervisory
skills and instruments. Second, there is need for inter-agency coordination which calls for better
understanding the respective roles of central banks, regulators, supervisors, and fiscal authorities with
regard to financial stability. The agencies need to share information/data and sit together to resolve the
overlapping issues devolving on more than one regulator. The third lesson points to the need to study the
implications of large scale bail-out packages for the regulatory architecture of the financial system and
for the fiscal health of countries. The rescue packages of one country may have worldwide repercussions….Read more : BANKING SECTOR

By,

Lakshmi Ramamurthy

Business Analyst