The global financial crisis of 2008underlined the importance of promoting financial stability through better regulation and supervision of financial institutions. This paper highlights the importance of financial regulation using a macroprudential approach in banking supervision. Among the most frequently cited factors for the 2008 financial and economic crisis are the extreme leverage that banks had built up under the previous Basel guidelines and the interconnectedness of the banking system. Capital controls are one of the main mechanisms to enhance financial stability. Macroprudential regulatory requirements and early warning system methods are encouraged to be used to enable quick decision making. Bank supervision, which has both positive and negative outcomes could also overcome market failure caused by flawed information.Furthermore, the monitoring and disciplining of banks could successively boost the governance of bank lending and reduce corruption. Regulatory measures such as tougher restrictions on bank activities and strengthened entry requirements have reduced the probability of banking crises. Finally both Macroprudential policies and Capital controls make the economy more stable and lessen the probability of a financial crisis.

This paper aims to investigate the (1) impact of business network on business performance, and (2) the moderating impact of human capital on the relationship between business network and business performance in the Malaysian manufacturing Small and Medium Enterprises (SMEs). The research data were collected through mail and self-administered questionnaires sent to owner-manager around Malaysia. A stratified random sampling was used which elicited 226 (15%) useable responses for further analysis. Out of twelve hypotheses presented, only four were supported; (1) the significant positive effect of network centrality on financial business performance, (2) the significant positive effect of network centrality on non-financial business performance, (3) age of entrepreneur as a moderator on the relationship between network centrality and non-financial business performance, (4) gender as a moderator on the relationship between network size and financial business performance. The study advances research on strategic business network for SME entrepreneurs particularly. Besides, there is still a shortage of research applying the moderating impact of human capital on the relationship between business network and business performance. Thus, this study contributes significantly to the body of knowledge especially to the manufacturing industry.