Since intragroup capital does not represent externally generated capital, intragroup capital should be excluded from the assessment of group capital. Parallel-owned banks In the case of parallel-owned banks, a bank set up in one jurisdiction has the same ownership as a bank in another jurisdiction, but neither of the banks is a subsidiary of the other.
Normally, the controlling companies of such parallel-owned banks are incorporated in unregulated financial centres. There is thus a clear potential for abuse. A working group of the Basel Committee on Banking Supervision recommended that host-country or home-country supervisors should be vigilant in order to ensure that operations of this kind become subject to consolidated supervision.