ABSTRACT
In this context, the chapter considers alternative approaches to achieving the objective of financial stability. A maintained theme is that what are often defined as alternatives are in fact complements within an overall regulatory strategy. The discussion is set within the context of what will be termed a regulatory regime which is wider than the rules and monitoring conducted by regulatory agencies. In essence, the focus is on how the components of a regulatory regime are to be combined to produce an optimum regulatory strategy. This follows on the tradition of Lindgren et al. (1996), who emphasise the three key strands of governance: internal to the firm; the discipline of the market; and regulation and supervision by official agencies. However, the chapter takes their paradigm further and discusses alternative approaches to regulation and supervision.
