These banks are now providing clients an option to diversify their business and not exclusively dependent on nationalized and large privatized banks that were the only sub-groups that had nationwide branch network. 25. Fifth, adoption of new Basel II accord brings in a comprehensive risk management system and links economic capital with the risk assessments.
Banking industry worldwide today faces several issues and challenges which unless effectively addressed would impact the pace of adoption and implementation of Basel II. In Pakistan the roadmap has already been given, and the standardized approach will commence from January 2008, while parallel run have been started from July 2006.