Basel Iii: Implementation And Challenges Faced By Pakistan’s Banking Industry

Arifa Bano

Abstract


The recent financial crises 2007/2008 revealed that the current banking regulations stood inadequate to avoid prevent banks from taking in unnecessary risk actions. Therefore, Bank for International settlement (BIS) and G-20 leaders endorsed a new international standard of banking regulations by revising previous Basel II rule into Basel III in late 2010, so as to enhance the quality including quantity of capital, leverage ratio and liquidity standards, which infect has become a challenge for nationals to implement these strict reforms under their existing banking system. Thus, this will ensure a huge influence upon the world’s commercial schemes and economies. On the other side, recently strengthened principal and fluidity necessities would make worldwide economic systems safer than earlier ones. Since, enhanced safety will become costly for banks to grip additional principal and to be extra liquefied, investment facilities will be inflexible to attain but less risky. The implementation impact of Basel III in long run to engage both banks and regulators in Pakistan about the operation and management changes within legal framework will result in a sound and stable banking system.


Full Text:

PDF

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Arifa Bano

ISSN: 2521-456x (Online), ISSN:1726-0396(Print)

Copyright © University of Sindh, Jamshoro. 2017 All Rights Reserved.
Printing and Publication by: Sindh University Press.