Host-country supervisors face the costs of adjusting to differences in the manners in which foreign banks will implement Basel II, while the banks and home-country supervisors worry about host-supervisor intrusions, questions, and special rules. These concerns are quite understandable.
One might choose to be philosophical and accept that there are inevitable costs of doing business as a global bank, and of supervising global banks, in a world of sovereign states. Fortunately the situation - as Mark Twain said about Wagner’s music - is “better than it sounds”. A variety of efforts are underway to mitigate the potential problems of the new system.