While change from the current status appears desirable, the issue is not only one of choosing an appropriate model, but also one of managing the process of change and sensitizing all participants to the changing circumstances. In any case, an ideal structure by itself does not guarantee optimal regulation, and in any structure, coordination among all wings involved, including the Government, is critical.
Financial regulation There are several theories that attempt to explain regulation in general and financial sector regulation in particular. These include theory of competition for regulation and theory of regulatory capture on the one hand and public interest theory aimed at correcting market failures on the other.