It must also ensure that banks do not hide problems by shifting assets or liabilities around their global operations and, more generally,  5  For a review of these instances, see Schoenmaker, Governance of International Banking, pp. 72–87. BIS central bankers’ speeches  5  that the banks are fundamentally safe and sound so as to forestall possible contagion risk to foreign operations.
Within these admittedly broad guidelines, there is obviously room for host countries to balance the benefits and risks presented by foreign banking organizations in a number of different ways. Their choices will be affected by policy preferences, the characteristics of their domestic financial systems, and the relative importance of foreign banks in those systems.