If you look across the world, it seems that regulators are busy trying to resolve some sort of financial calamity. But regulation of financial institutions is not new. Regulation has been in existence for over one hundred and fifty years. So why have Regulators not mastered the job of regulation. Well, I could think of three reasons: 1.
Rapidly evolving innovation and creativity in terms of services and products being offered by financial institutions. 2  BIS Review 30/2009  2. The recognition that risk taking should not be totally outlawed since under certain conditions it could benefit consumers. 3. The fact that laws cannot legislate good behaviour or by extension, good governance. 4.