Furthermore, co-ordination among the financial institutions took precedence over arms length relationships or checks and balances, thus introducing what may be called a joint-family approach to financial transactions, which undermined both the degree of transparency and the extent of accountability. The next question is, what constitutes regulation.
Regulation in its broadest sense includes establishing specific rules of behaviour, or regulatory aspect per se, monitoring or tracking observance of behaviour; and supervision or oversight of the compliance with specific rules in the overall behaviour along with disincentives and penal provisions for non-compliance.