These challenges offer opportunities to the banks as well, to strengthen and transform themselves to better compete both within and outside domestic markets. Banking industry worldwide today faces several issues and challenges which unless effectively addressed would impact the pace of adoption and implementation of Basel II.
These include 1)  Good and Reliable Data and Information  2)  Development of sound risk-management system  3)  Asymmetry in supervision  4)  Imperfect Markets  5)  Pro-cyclicality  6)  Access to finance for disadvantaged  7)  Operational costs  8)  Cross-border challenges.