For example, banks do face (i) maturity mismatches, of special concern in the rising interest rate scenario; (ii) potential risk of loan defaults in the backdrop of rising consumer finance portfolios and equity markets exposure of the banking system; and (iii) risks posed by weaknesses in internal control system and lack of effective mechanism for containing operational risks.
Commercial banks are launching substantive efforts to address these problems and adoption of technological solutions and connectivity of all branches with headquarters of banks will help in this area. Implementation of Basel II Accord. Pakistan adopted a road map for implementation of Basel II Accord.