Here I would like to briefly touch on the major constraints that the NBFI sector in Pakistan is beset with: First, although there has been an increasing effort by NBFIs to broaden the range of their business activities and product base, thereby diversifying their revenue streams, the sector is yet to make a breakthrough in this regard.
I will consider the liquidity regulation proposed by the Basel Committee of Banking Supervision. The Basel proposal is centred on two new standards to establish minimum levels of liquidity for internationally active banks. The standards aim to promote the resilience of banks’ liquidity risk profiles.