The sovereign debt crisis has given a fresh impetus to calls to water down or delay regulatory reform. Some argue that the ongoing uncertainty in financial markets and the weak global economy are good reasons to ease up on regulatory pressure. They say the financial sector is being asked to do too much too soon, and regulators should slow the speed of adjustment.
Much of the necessary payments systems infrastructure are already in place, which will serve to develop efficient financial services industry and markets, which is key in emerging market economies. These structural changes will help to maintain the health and stability of the financial system. They will also improve the transmission mechanism of monetary policy actions (e.g.