Regulation and Supervision of the Global Financial System

Abstract

“A liquid, highly innovative financial system is necessary for the growth of modern economies. It is not only the lubricant that smooth the friction of exchange from the neighbourhood shop to global money markets, it is also when mixed with entrepreneurship, skills and innovation, the fuel in the engine of economic growth (...) But finance is highly volatile material, liable to explode and destroy the very engine is oils and fuels. It must be managed with care.” (Eatwell & Taylor, 2000, p. 208)