Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia

Bibliographic Information
Journal	Grassroots
Title	Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia
Author(s)	Talpur, Arifa Bano, Kamleshwer Lohana, Zareen Khan Rind
Volume	54
Issue	2
Year	2020
Pages	-
Full Text
URL	Link
Keywords	Basel Iii, Islamic Banking, Islamic Financial Services Board (Ifsb) , Financial Stability, Shari’Ah Compliance.
Chicago 16th	Talpur, Arifa Bano, Kamleshwer Lohana, Zareen Khan Rind. "Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia." Grassroots 54, no. 2 (2020).
APA 6th	Talpur, A. B., Lohana, K., Rind, Z. K. (2020). Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia. Grassroots, 54(2).
MHRA	Talpur, Arifa Bano, Kamleshwer Lohana, Zareen Khan Rind. 2020. 'Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia', Grassroots, 54.
MLA	Talpur, Arifa Bano, Kamleshwer Lohana, Zareen Khan Rind. "Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia." Grassroots 54.2 (2020). Print.
Harvard	TALPUR, A. B., LOHANA, K., RIND, Z. K. 2020. Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia. Grassroots, 54.

Grassroots Volume 54 Issue 2 Contents

Examining the Issue of Identity in Ayisha Malik’s Novel “Sofia Khan is Not Obliged” Through Homi K. Bhabha’s Concepts of ‘Hybridity, Ambivalence and Mimicry’ Development Discourse and Womens Empowerment in Sindh Benazir Bhutto and the Challenge and Response Theory Socio-Economic Conditions of Home-Based Working Women: A Qualitative Study in Hyderabad, Sindh Perceptions of Sindhi Muslims Towards Exogamous Marriages: An Exploratory Study Reconciliation Process in Afghanistan and Pakistan as Cardinal Player Hybrid Warfare and its Impacts on Pakistan Why Social Protection is Not Enough to Effectively Address Poverty Reduction in Pakistan Basel Iii: Impact and Challenges to Islamic Financial Institutions: Evidence of Pakistan and Malaysia Gwadar on the Chess Board of History: An Overview Human Capital and Foreign Direct Investment: Lessons for Pakistan Investigating Peace Education and Peace Culture Activities in the Curriculum of Secondary Schools of Pakistan Influence of Educational and Financial Status of Parents on the Academic Performance of Secondary School Students: A Case Study in Hyderabad Division-Sindh Negative Wash-Back of Formative Assessment to Learning in Saudi Higher Education Context Proposing Sociological Research on Children Health Problems in Pakistan Perception of University Students About Horoscopes in Sindh Province, Pakistan Representation of Gender in Pakistani Comedy Dramas

Abstract

The global financial crises 2007 bring about the current banking regulations which stood inadequate to avoid banks from taking in unnecessary risk actions. Therefore, Bank for International Settlement (BIS) and G-20 leaders endorsed a new international standard of banking regulations by revising previous Basel II rule, introduced in 2004, into Basel III in late 2010, so as to enhance the quality including quantity of capital, leverage ratio and liquidity standards, which has become a challenge for nationals to implement these strict reforms under their existing banking system. Parallel with the conventional banking system, for which the Basel Committee formulated Basel framework, Islamic banking introduced in early 1977 to 1980 in Pakistan in response to the decision by the Shariat Bench of Supreme Court, necessitates that the financial system be transformed to operate in conformity with sharia. The State Bank of Pakistan (SBP) and Bank Negara Malaysia are the regulator of Islamic banks and full member of IFSB. The Islamic Financial Services Board (IFSB) established in 2002 in Malaysia as an international standard-setting organization to enforce the international regulatory and supervisory guidelines for Islamic financial organizations along with other standard setting bodies such as AAOIFI and ISDB to achieve this objective. The IFSB promotes the stability and soundness of the Islamic financial institutions by issuing guiding standards and prudential regulations for the industry, The IFSB applied Basel standards in the context of Islamic banks and its operating models. This paper critically evaluates Islamic financial institution’s regulatory and supervisory structures particularly for Pakistan and Malaysia and examines financial position after implementing Basel Accord rules. Study suggests a positive impact in case of both countries.