@Jag Rao Finance is risky business and it would be naive to think crises can be eliminated completely. The role of financial sector policies and in particular regulation and supervision is to make crises less frequent and reduce their cost when they occur. But the recent crisis clearly revealed many weaknesses in the policies of industrialized countries too (see my earlier post on the crisis). The Bank provides plenty of specific financial sector policy advice to its countries through its Financial Sector Assessment Program and its on-going dialogue; and the blog is not the right place for that. But stay tuned on more research insights on the evolution of financial systems.