Chapter 2 examines how government networks can minimise the financial trilemma in ASEAN. It focuses on cross-border bank supervision and distinguishes between horizontal and vertical networks. The Basel Committee on Banking Supervision is highlighted as a horizontal network that uses soft laws, such as the Basel Core Principles. The chapter identifies limitations of this horizontal network, including its complex risk models, the lack of a widely accepted rationale and measurement of its liquidity requirements, and the incompatibility of Basel standards with developing countries’ financial goals. Drawing lessons from the EU’s Banking Union, it argues that a vertical government network could harmonise supervision and reduce home-host conflicts. If ASEAN decides to follow the EU’s path, it could adopt a phased approach by strengthening capacity-building programmes, empowering its institutions with rule-based norms, and eventually establishing a supranational authority for banking supervision.