One effective method might be to allow institutions to count such instruments as capital. 18  Flannery, M. J. (2005), “No Pain, No Gain? Effecting Market Discipline via 'Reverse Convertible Debentures',” Chapter 5 of Capital Adequacy beyond Basel: Banking, Securities, and Insurance, edited by Hal S. Scott, Oxford University Press, 2005. 19  Hart, O., and L. Zingales (2009), “To Regulate Finance, Try http://experts.foreignpolicy.com/posts/2009/03/30/to_regulate_finance_try_the_market.
14  the  Market,”  in  BIS Review 74/2009  7. Conclusions  There is a growing momentum, particularly in Europe, for stronger bank regulation. The argument is based on the opinion that the current global financial crisis would not have occurred if regulation had been sufficiently strong. However, one must question whether stronger regulation by itself will prevent future financial crises.