The regulator should, and especially after the global financial crisis, not look for avenues of more regulation but support transformation and innovation through better regulation. What is better regulation? From Sir Andrew Crockett, it is a regulatory regime that:   Can readily identify weaknesses and emerging vulnerabilities.   Is capable of analyzing risks and so adequately pricing risks.
  Provides appropriate incentives (penalties) to induce prudent behavior in the market place. This will encourage innovations and strong institutions to develop in the economy. Ladies and Gentlemen: The structural transformation experienced thus far is just but the beginning. The Central Bank and other players have earmarked several other reforms which are expected to take development of the financial sector to new frontiers.