Financial crises have become an all too common occurrence over the past twenty years, largely as a result of changes in finance brought about by increasing internationalization and integration. As domestic financial systems and economies have become more interlinked, weaknesses can significantly impact not only individual economies but also markets, financial intermediaries, and economies around the world. This volume addresses the twin objectives of financial development in the context of financial stability and the role of law in supporting both. Financial stability (frequently seen as the avoidance of financial crisis) has become an objective of both the international financial architecture and individual economies and central banks. At the same time, financial development is now seen to play an important role in economic growth. In both financial stability and financial development, law and related institutions have a central role.

This book is about international and domestic responses to financial crises over the past twenty years. At the same time, it also provides an agenda for financial development to support economic growth while avoiding or reducing the impact of financial crises in individual economies. In so doing, the volume provides the first comprehensive analysis of the role of law and institutions in financial stability and financial development.

Part I. Finance and the International Financial Architecture: 1. Law, finance, and development; 2. Financial stability and the international financial architecture; Part II. Foundations of Finance: 3. Preconditions for and institutional underpinnings of finance; 4. Central banking and financial policy; 5. Financial infrastructure; Part III. Financial Regulation and Supervision: 6. Banking: regulation, supervision, and development; 7. Non-bank finance: securities, insurance, pensions, and microfinance; 8. Financial liberalization, financial conglomerates and financial regulatory structure; Part IV. Looking Forward: 9. The international financial architecture; 10. Reforming financial systems.