“IMPACT OF BANKING SECTOR REFORMS ON THE SOUNDNESS OF BANKS IN PAKISTAN”

Abstract

This study assesses the impact of Banking Sector Reforms on the Soundness of Banks Operating in Pakistan during and after the first generation reforms. Thus, the paper ascertains the deep impact of reforms on the performance of banks. The scenario has been marked with consolidation and mergers, capital adequacy ratios appear stronger, asset quality has been improved with a check on Non Performing Loans and management has been exhibited soundness. The analysis suggests the need for continuity of banking sector reforms. Though salient measures have been undertaken by the governments to update and improve the legislative framework, there remains a need to constantly upgrade them in the light of changing global conditions.