Although it was designed to improve and stabilize the financial system worldwide, especially in developing and emerging countries, the implementation of Basel III has involved a number of challenges and obstacles. Pakistan, with its recent economic expansion and lagging rate of Basel III implementation, is among the countries that have confronted such impediments. In this paper, our empirical analysis is based on a survey of risk managers. Its goal to improve capital standards and its scientific treatment of risk ensures that Basel III is well regarded, specifically in the Islamic banking sector of Pakistan. The hindrance to its implementation is operational risk; this problem has only been partially addressed. The publicly owned banks are considered less proficient than the privately owned banks.
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