More generally, our requirements for other prudential regulations applicable to foreign banking organizations (FBOs) are calibrated to the relative importance of the FBOs in the U.S. financial system. Thus the structure of surcharges also help to create a good mechanism for balancing host country interests in assuring financial stability and in realizing the benefits that can come from global banking.
Even with good standards, regulators in host jurisdictions will want assurance that these standards are being rigorously implemented and enforced. The relative opaqueness of bank balance sheets makes capital, liquidity, and other common banking regulations difficult to monitor effectively.