Too Big to Fail Versus Too Small to Be Counted

Financial reform must not ignore the interests of small stakeholders – who must be regarded as too small to be counted. Making equity an explicit objective is delicate: it needs to be calibrated such that the vulnerable are not exposed to further risks. Policies outside the realm of financial regulation should support the aim of improving the lot of small stakeholders. Technology could be a game changer and the central regulatory authorities should usher in a policy that helps the inclusion agenda to embrace technology. The transaction costs could potentially be minimal and the fees charged to the vulnerable should encourage them to embrace formal financial systems.Full publication: "http://ssrn.com/abstract=2002004" Financial Sector Regulation for Growth, Equity and Stability