Similarly, the stated purpose of the Basel Committee in requiring consolidated capital requirements is not to remove from host countries any responsibility or discretion to apply regulatory capital requirements, but to “preserve the integrity of capital in banks with subsidiaries by eliminating double gearing.” 5 Likewise, and contrary to suggestions that are sometimes made, the capital accords and frameworks developed by the Basel Committee have always been explicitly minimum requirements.
Activities in almost all the sectors in varying degrees are influenced by global factors, be it trade in commodities, provision of services, financing conditions, or consumer taste. Now domestic prices are more influenced by changes in global commodity prices for a wide range of goods – a sea change from the 1970s and 1980s when crude prices were major global influencing factors.