The article discusses how policymakers in developing Asia should manage financial deepening to enhance stability. It analyzes past crises and finds that financial repression can actually harm stability. Bank-centric systems are not always safer than those with securities markets. Diversifying financial systems with different types of institutions and instruments is important. Regulating financial intermediaries is more effective than controlling interest rates. Encouraging local currency lending and bond issuance is beneficial. Macroprudential tools are useful, especially in less open or financially deep economies.