Most importantly, appropriate regulation and supervision would minimize the susceptibility of these institutions and their clients to adverse systemic and prudential risks. It ensures the protection of the interests of depositors and creditors, and the maintenance of confidence in the overall financial system by promoting its strength and integrity.
From our side, there may of course be some reluctance on the part of regulators to take on the role, given that extra costs are incurred in supervising these institutions. Apart from the costs, the regulators may lack the immediate resources, knowledge, skills and awareness in these often uncharted areas.