Abstract:

The banking sector needs progressive and adequate management for growth of the country’s economy. Moreover, sufficient capital resources are essential for well functioning of the banking sector and supports to absorb losses resulting from its risks. The crucial roles of banks in maintaining the growth of the economy and their feasible contributions when it comes to economic failures, leads the Basel Committee on Banking Supervision (BCBS) to sufficiently concentrate on regulations of the banking sector. As on September 2015, 5 commercial banks in public sector, 27 local and 5 foreign banks were operating in Pakistan. The State Bank of Pakistan (SBP) is sole regulatory and supervisory authority to monitor all banks is also the central bank in Pakistan. SBP plays the role of a facilitator in growth and development as a leading regulatory of banking sector. In this context the objective of this paper is the discuss the Basel Capital Accords’ implementation process and status in Pakistan as well as the performance of Pakistani commercial banks in terms of assets quality, solvency, liquidity and profitability during the period of 2004-2014.