Cross-border issues are particularly complicated because the new accord will apply to both consolidated banking organizations in home countries as well as subsidiary bank and bank holding companies in host countries. This August the AIG issued a set of high-level principles for cross-border implementation of the accord. These principles lay the groundwork for further cooperation and coordination for implementation among member countries.
They clearly identify the need to respect both home and host country rules and regulations, the need for enhanced and pragmatic cooperation between both types of supervisors, and the desire for supervisors to minimize the burden on banking groups as much as possible. The U.S. agencies believe that their choice for scope of application is consistent with these principles.