The Impact of Basel III in Pakistani Banking Sector

Abstract

The new Basel III requirements expose banks across the globe to major challenges regarding their capital and liquidity requirements as well as their risk management. The new Basel III proposal was published in December 2010 by the Basel Committee on Banking Supervision and will be phased in over the next couple of years. Identifying the necessary steps for compliance and developing a comprehensive plan to address the issues and concerns raised by Basel III are by now a significant undertaking for most banks. Accenture works with banks in a number of areas to address Basel III issues and set priorities for the near, mid- and longer term. With our extensive experience across a wide variety of aspects of risk management, and long-time project management experience in Basel related areas including functional, technical and process-related= assignments, Accenture is well suited to help banks chart a course in the Basel III landscape. Accenture brings to bear a wealth of highly experienced professionals as well as project management tools to assist in identifying the gaps to effectively implement Basel III, address risk and issue management, progress tracking and status reporting, helping identify deviations from the project plan, target achievements and initiate measures to get back on the path to completion. We believe that the real challenge for affected banks will be to build upon the actions mandated by Basel III to create stronger capital and risk structures. Banks that meet and surpass the Basel III requirements may not return to levels of profitability experienced before the global financial crisis of 2008 and 2009, but they will be in position to be well-prepared for the next crisis and achieve high performance within their industry.