In what follows, I talk about the roles both direct and indirect financing are expected to play in terms of firms' fund raising. D. Expected Roles for Direct Financing First, let me talk about direct financing, in which firms issue stocks to raise funds directly.
This approach to capital regulation, with its market-discipline component, signals that sound accounting and disclosure will continue to be important parts of the global bank supervisory approach for many years to come. In addition to disclosure and market discipline, supervisors and regulators around the world recognize the need for stronger audit and control standards for financial services firms and other companies.