The failure on the part of Banks to enforce rigorous self regulation has precipitated a deep and prolonged global recession. This book provides a comprehensive review of the principles, institutions and experience of banking and financial regulation. The origins and resolution of the credit crisis are explored in depth. This volume offers extensive coverage of subjects on the regulation of banks and securities markets. It provides tools to help illustrate the principles of regulation, and presents real examples of the credit crunch. The analysis of functions of financial institutions demonstrates how structures, such as the government, react to innovations such as securitization. The authors of this volume, both prominent experts in this field, illustrate how regulatory reform will provide a balance between financial stability and economic growth, whilst strengthening the recovery of the economy and ultimately leading to future prosperity. This book is indispensable reading for all interested in international banking and finance, macroeconomics and capital market regulation, and for institutions, professionals, practitioners, postgraduates and students engaged in international financial business.