The key motives for cross-border coordination are to avoid regulatory arbitrage on the one hand and to provide a level playing field for financial  9  For a detailed discussion about coordination issues, see Csajbók, A and J. Király (2010): “Cross-border coordination of macroprudential policies”, forthcoming in a Chicago Fed – IMF conference proceedings volume.
4  BIS Review 150/2010  institutions on the other. I believe that this is especially true in the case of the CESEE region as these countries are deeply integrated in the European banking system, with the branches and subsidiaries of Western European banks being dominant players in the CESEE domestic financial systems. Home-host coordination is therefore of primary importance.