Assessing credit Risk management practices of bank of Khyber in context of Basel II

Abstract

Banks are the financial intermediaries that accept the funds from individuals and entertain each individual with their own preferences. Banks deposit the funds from their customer their different basis, it may be fixed deposit, current and saving all these types varies with their different functionalities. Banks are called intermediaries because they collect funds from surplus unit and give these funds to the deficit units. Surplus units are those who contain money more than their use while deficits unit are those who need money in order to run their operations. In every country the banking sector play a vital role like the function of heart in the body and the money role is just like blood in the body.so the bank work as a financial agent for the public of the desire country. The banks operating in Pakistan is 35, in which there are five government banks which are BOK, NBP, BOP, BOS and first woman bank in the total banks. Some are private some are international banks in the total. The Pakistan banking polices is a better as compared to other countries polices in term to control the risk related to their general banking activities that is the main reason due to which Pakistan banking sector feel safe in the credit crisis that began in 2007 and the product that created from residual mortgages.