Learning from China's regulatory redesign

China recently redesigned its financial regulatory architecture, clarifying which agency will do what. It is time for India to revisit this issue

Financial regulatory architecture is the question of what financial agencies should exist, and what their respective mandates should be. This is an important subject because performance comes out of accountability. Each financial agency requires a simple and clear mandate to be held accountable for performance. In addition, there are many elements of work in financial economic policy where conflicts of interest can hamper performance if certain functions are placed together. Reforms of financial regulatory architecture are extremely important, but any such proposal elicits yowls of protest from incumbent officials, as the fundamental law of bureaucratic politics is that power and