Drastic changes result in drastic consequences.
The higher we rise, the harder we fall. This makes governance an important tool to mitigate the adverse consequences of decision-making gone wrong. The 1997 Asian financial crisis brought the discussions on the role of the financial system in economic growth and the importance of a responsive regulatory framework over the banking system to the forefront. Severe disruptions in the effective functioning of the financial intermediation process could push an economy to a downward spiral. Since the onset of the financial crisis, specific issues such as resolving moral hazard problems, improving corporate governance, and strengthening regulatory practices and prudential standards have received considerable interest.