Basel II aims to strengthen financial stability in emerging markets like Pakistan by establishing risk management standards for banks. However, implementing Basel II by 2010 poses challenges for Pakistan's economy and individual banks. The document analyzes Basel II's role and limitations in Pakistan through a questionnaire given to risk managers, to understand challenges in implementing the framework and determine if it truly leads to greater financial stability.

1. Role and Limitations ofRole and Limitations of
Basel II in PakistanBasel II in Pakistan
Analysis of the role and
limitations of Basel II
within Emerging Market
Economies (EME) under
the light of most recent
Global Financial Crises
Basel II
The Three Pillar Approach
Global Implementation
Procyclicality under Basel II
Basel II: Implementation
How much will it cost?
•Individual Banks perspective
•Overall Economy perspective
•Pakistan: An emerging economy, 2nd largest in
South Asia.
•Planned implementation completion: Year 2010
•In Pakistan: Basel II implementation perceived
as a “route to financial stability”
Questionnaire based methodology
Target Risk Managers running day to day business (Banks
and Regulatory Authorities)
1. Test knowledge of Basel II as the basis for effective
implementation and identify challenges in Basel II
implementation
2. Analyze the role and limitations of Basel II in Pakistan
Shazaib Butt
06022226
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