This paper looks at the international financial regulatory framework, in light of the Greek crises. The Greek crises were spurred by the inability of the Greece government to meet its sovereignty debt obligation to finance its budgetary obligations. The paper identifies current challenges for establishing stable and efficient global financial system using lessons that are learned from the Greece crises. Financial reforms proposed to forestall future crises include understanding and integrating into existing regulations agents’ incentives in order to realign them with the objective of the society.
The international financial law serves as the framework of practices, rules and standards that are set to govern the international financial transactions and markets. This framework aims at creating the international financial stability. The financial stability has to create in the environment of various national jurisdictions, with each jurisdiction pursuing its own governance standards and national interests. Contemporary international financial stability and sustainability is under constant threat as a consequence of increasing financial innovation, technological development, and evolving globalization. The international finance is governed by law and regulation which are developed by both multinational institutions (such as IMF, World Bank, functional regulators (e.g. G8), and trade associations) and national governments. National governments serve as the principal regulators and formulators of international financial policies, where every country in the world has an international dimension to the way it regulates the domestic economy.
Given the increasing interconnectedness and financial systems interoperability, financial crunch emanating from one jurisdiction or economic block is easily transmitted to other global financial system. For example, the busting of the housing bubble in the US that peaked in 2008, lead to widespread damage to the global financial
 Prasch, Robert, and Thierry Warin. “Systemic risk and financial regulations: A theoretical perspective.” Journal of Banking Regulation (2015).
 Buckley, R.P., 2001. Tale of Two Crises: The Search for the Enduring Reforms of the International Financial System, A. UCLA J. Int’l L. & Foreign Aff., 6, p.1.