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The regulation of financial intermediaries is a significant challenge to policy makers, particularly those in emerging economies. This volume examines: the best practices in regulation in emerging markets; the new Basle norms for capital adequacy; the question of single versus multiple regulators, as viewed by the International Monetary Fund; ways to harness incentives in the context of banking; the subsidy dependence enjoyed by commercial banks and the development of financial institutions before and after the commencement of financial reforms in India; and proposes an innovative approach to setting limits for NPAs in banks.