The theory and practice of central banking reflect a symbiotic relationship that has gradually evolved along with the financial system. An important milestone has been a heightened focus on financial stability and a greater appreciation of the importance of macro-prudential policy in central...

Inadequate regulations or failure of regulations to keep pace with financial innovations could have been reasons for financial crises but equally critical contributing factors for financial distress have been inadequate internal control, false assumptions about market and liquidity, and lack of...