Whereas the State Bank of Pakistan has chalked out a roadmap for the transition of the banking system to this new capital regime, we intend to, like so many other economies, first adopt the standardized approach to credit risk and operational risk from January 1, 2008 and then move forward with the adoption of the internal ratings based (IRB) approach from January 1, 2010, subject to due diligence of the banks with international presence.
In addition to government paper, these securities include domestic issues by supranationals and other foreign governments, ADIissued debt securities and asset-backed securities, including residential mortgage-backed securities (RMBS). However for the purposes of the CLF, the RBA will also allow banks to present certain related-party assets such as self-securitised RMBS.