However, the host regulator should also recognize that it is ultimately in its interest for the SPOE resolution of the foreign bank to be successful and, given the uncertainty of the circumstances or location of losses that emerge in an actual stress, adequate flexibility for the parent to deploy resources where needed is likewise in the host regulator’s interest.
In 2000, Asia’s middle-income population stood at about 200 million, but by 2010 it was estimated to have grown to almost 1 billion, exceeding the aggregate population of Japan, the United States, and the euro area. Furthermore, this middle-income population is forecast to double by 2020.