First, it is understood that the Basel II framework provides for as many as about 130 areas of national discretion to be exercised by the country supervisors, as per local conditions. Thus, it has been argued that potentially, there could be 130 variations of the new framework under different jurisdictions.
If that be the case, the international comparability of the bank-capital standards would be difficult to achieve across the countries and perhaps, the original objective of reducing the international competitive inequality amongst the banks could get compromised.