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

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.

Uterine Fibroid Embolization for Symptomatic Fibroids; Correlation of Mid-Term Changes in Disease-Specific Symptoms and Magnetic Resonance Imaging Results at a Teaching Hospital in Kenya

Background: Uterine fibroid embolization, though a widely available option in high income countries in managing symptomatic fibroids is relatively new in the East African region. It is currently offered at only one tertiary facility for the past three years. The symptom and radiological response in these patients, who literature suggests may have bigger fibroid burden and worse symptoms, is the subject of this study. Objective: Characterization of MRI imaging features in women undergoing uterine fibroid embolization and identification of clinical correlates in an African population. Methods: Patients with symptomatic fibroids who are selected to undergo UFE at the hospital formed the study population. The baseline MRI features, baseline symptom score, short term imaging outcome and mid-term symptom scores were analysed for interval changes. Assessment of potential associations between short term imaging features and the mid-term symptom scores were also done. Results: UFE resulted in statistically significant reductions (P< 0.001) of dominant fibroid and uterine volumes and in symptom severity scores of 43.7%, 40.1% and 37.8% respectively. Strong enhancement at baseline was a strong predictor of response to UFE.59% of respondents had more than ten fibroids. The predominant location of the dominant fibroid was intramural. No statistically significant association was found between clinical and radiological outcome. Discussion: UFE is a new treatment option for treatment of uterine fibroids in Kenya. This study was aimed at assessing outcomes to this treatment option compared to other parts of the world. The response of uterine fibroids to embolization in the African population is good but not different from findings reported in other studies in the West. The presence of multiple and large fibroids seen here is consistent with the case mix described in studies of African-American populations. No significant association is seen between radiological and clinical outcomes to UFE. Conclusion: UFE treatment for fibroids has good outcome. Further studies lasting beyond one year are indicated for further detailed outcome in the local African population. Recommendations: Patient counselling should emphasise the independence of volume reduction and symptom improvement. Volume changes are of relevance for the Radiologist in aiding understanding of the evolution of the condition and identifying potential technical treatment failures but should not be the main basis of evaluation of treatment success.