11-26-2004, 03:48 PM
State Bank of Pakistan, among other reforms, introduced Risk management guidelines and internal control guidelines for Commercial banks. These can be accessed at their website i.e www.sbp.org.pk or click at the following links
http//www.sbp.org.pk/bsd/2003/C7.htm
http//www.sbp.org.pk/bsd/2004/C7.htm
The above considers Liquidity, Credit, Operational and Interest rate risks that are faced by commercial banks at large.
Apparently for industrial sector, regulators does not appears to be interested in risk management function. It depends entirely on the management of the concern how seriously they consider risk facors and their mitigation.
DT.....(my opinion....it may be wrong) very few banks in Pakistan considers Basel II at this point of time..... I think that like Basel I, they will catch up with it when all other banks in the world have done their work and then they will follow suite.
http//www.sbp.org.pk/bsd/2003/C7.htm
http//www.sbp.org.pk/bsd/2004/C7.htm
The above considers Liquidity, Credit, Operational and Interest rate risks that are faced by commercial banks at large.
Apparently for industrial sector, regulators does not appears to be interested in risk management function. It depends entirely on the management of the concern how seriously they consider risk facors and their mitigation.
DT.....(my opinion....it may be wrong) very few banks in Pakistan considers Basel II at this point of time..... I think that like Basel I, they will catch up with it when all other banks in the world have done their work and then they will follow suite.
