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The Global Financial Crisis (GFC) of 2008 has revealed weaknesses in financial regulatory policies and institutions in many countries. These weaknesses extend to the regional and international domains of financial policy as well. This article calls for the need for better designed financial regulations and policies by taking a policy design perspective. It provides a multi-level approach to understanding financial reform as design that examines the various components of policy design — policy means, goals and change — at the three levels of policymaking — international regional, national. In doing so, we aim to provide a first step towards a more design-centric approach to financial sector reform.

Policy design, or the deliberate governmental effort to attain desired policy objectives, is an integral part of micro and macro-level fiscal and financial regulation. This paper seeks to address the role of regime coherence and policy capacity in contributing to effective financial policy design. Drawing on the cases of the Global Financial Crisis and Asian Financial Crisis and focusing on Asian states, we assess regime capacity at both international and domestic levels. We argue that it is the integration of analytical, operational and political capacities that have contributed to the overall ability of a government regime to address and respond to crises.