The extreme disruption resulting from Asia's financial crisis demand a thorough reassessment of the standard models for financial sector reform. After reviewing a number of now discredited preconceptions about financial liberalization, such as that financial markets are self-regulating, or that foreign investors and credit-rating agencies are good at assessing risk, this paper explores some options that should be considered in planning for future financial systems development. These include: less ambitious economic growth targets; less reliance on debt finance and more on self-finance; insulating payment system functions from saving-investment functions; reinforcing capital-asset requirements with solvency reserve requirements; restricting some forms of capital inflows and requiring better disclosure of foreign borrowing; limiting bank secrecy rules and making banks more transparent; strengthening international co-ordination of prudential regulation and permitting direct intervention by regulatory authorities to deal with financial market manipulation.