In light of the dynamic and sometimes turbulent developments in the financial markets and within the banking system, policymakers are experimenting with new forms of regulation and ways to deal with complexity and uncertainty. In the area of banking regulation, Sven Kette analyzes the significant regulatory standard 'Basel II' to elucidate the functional logic of such a cognitive mode of governance. He also focuses on the historical conditions of its emergence, as well as the emerging consequences and problem situations, thereby providing a comprehensive description of an emerging pattern of order in the knowledge society - cognitive governance.