The personal dependence of the Reserve Bank is determined by Section 4 of the Act indicating the conditions of appointment of the Governor, three deputy governors and other board members of the Reserve Bank. This section clearly precludes any person actively involved in politics of becoming a board member of the Bank.
The second competitive equity concern relates to the international consistency with which Basel II will be implemented. Inconsistency in international standards of implementation and enforcement, it is sometimes said, will put internationally active U.S. banks at a competitive disadvantage and may also hurt purely domestic U.S. banks vis-à-vis the U.S. subsidiaries of foreign banks.