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Synopsis The regulation of financial intermediaries continues to pose significant challenges to policymakers the world over. The task is especially difficult in emerging markets, where various factors--including macroeconomic voltality, relative under-capitalization of banks, the absence of market discipline and lax supervision--combine to render the banking system fragile. As was evident in the East Asian crisis of the late nineties, this can increase manifold the adverse effects of economic shocks. Taking stock of several important issues in the regulation of financial intermediaries in emerging markets, this volume: Outlines the direction in which financial regulation should evolve in those markets. Addresses themes related to optimal regulation as well as issues specific to regulation in the Indian context. Identifies key elements in the best practices regulation in emerging markets; and Proposes an innovative approach for setting limits to NPAs in banks. Overall, the original essays gathered here provide a comprehensive account of various important issues involved in regulating financial intermediaries and make valuable and practical suggestions on how to improve regulation in emerging markets. An important feature of the volume is that it brings together both scholars from academia and finance professionals from various multilateral agencies. As a consequence, it provides a fine balance between cross-country empirical evidence and conceptual contributions. The volume will be of immense use to students and scholars of economics, financial management and banking, while being of equal value to financial institutions, the banking sector and policymakers.