There are several analytical themes in this monograph, and our specific policy conclusions flow from them. The themes are:

I Distinction is made between regulation (the establishment of specific rules of behaviour), monitoring (observing whether the rules are obeyed), and supervision (the more general observation of the behaviour of financial firms). Each involves different issues. The balance among the three activities varies between countries, and over time. For instance, there is currently a shift in emphasis away from detailed and prescriptive regulation towards monitoring and supervision.