The purpose of regulation is to build in safeguards against failure of financial institutions and financial markets. Financial firms such as banks are different from non-financial firms, and financial markets are different from non-financial markets. The important difference is that financial firms are all interconnected, and a disruption in any one part of the system spreads rapidly through the entire system.
The success of the regional integration initiative is anchored on a number of convergence criteria that require information and analysis: In this regard, the computation, concepts, definitions and methods used in compiling the indicators that determine the convergence criteria must be understood, harmonized and consistent across all Partner States.