For example, in the UK, between 1998 and 2007, the resident branches of foreign banks – which unlike subsidiaries, are not subject to host country regulation – increased lending in response to tighter capital requirements on domestic regulated banks, thereby offsetting about one third of the tightening manoeuvre.10 The reciprocity arrangements included in the Basel III package  9  J. Kyu Lee (2013), “The Operation of Macroprudential Policy Measures: The Case of Korea in the 2000s”, Bank of Korea Working Paper, 2013–1.
Indeed, the economic journalists’ most frequent question these days is some variant of: “How long will it last?” “Is the good news temporary or permanent?” I get this question all the time, as do all members of the Federal Open Market Committee. Hope springs eternal that we may be privy to some secret economic clues available only to readers of entrails inside the temple.