Financial regulations are important for preventing economic and social crises. The researchers suggest using the term "institutional rules" instead of "institutions" to avoid confusion. They define "institutional framework" as the set of rules within an organization or economy. Regulations can be general rules set by the government or specific controls on transactions and firms. Strengthening the state as a legislator may be necessary to limit executive decision-making. It is crucial to distinguish between regulations for inter-firm relationships and those for intra-firm governance.