2 This principle was reinforced and elaborated following the Bank of Credit and Commerce International episode in the early 1990s. 3 It is important to note that each Basel Committee declaration on the importance of homecountry consolidated oversight has also included a statement of the obligations and prerogatives of host states in which significant foreign bank operations are located.
In addition, the globalisation process in the area of financial transactions is much faster and deeper than in trade in goods and services. If a shock occurs in one country, it will immediately spill over onto numerous other financial markets. In this context, central bank co-operation is becoming increasingly important. In fact, strong ties have been established at various levels.