From the book “Restoring Financial Stability: How to Repair a Failed System”. Section VII: International Coordination
Many of the policy recommendations being put forward to repair national financial architectures will prove to be ineffective – or at least their edge blunted – if there is a lack of international coordination among central banks and financial stability regulators in implementing them. This issue is important; although cross-border banking and financial flows are extensive, much of bank and financial supervision remains national. There is some consensus on prudential aspects of regulation such as capital requirements and their calculation, but there is hardly any consensus on the core set of principles driving the regulatory stance to providing guarantees and intervening in markets and banking sector.