The differences in preparedness of banks would hinder information sharing across sectors and across borders. Moreover, this may also create restriction in credit flow from banks of developed countries into the emerging economies, because these banks may be discouraged due to high capital allocation for such investment.
The most basic step is to ensure that whatever is the stage of development vis-à-vis the Basel II implementation, at least adequate information disclosure rules (Pillar III) are in place. This would help in building the confidence level of foreign donors and banks.