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Effect of Explicit Deposit Insurance on Moral Hazard of Banks Risk-Taking: in Cross Section of Supervision

Thesis Info

Access Option

External Link

Author

Mumtaz, Raheel

Program

PhD

Institute

COMSATS University Islamabad

City

Islamabad

Province

Islamabad.

Country

Pakistan

Thesis Completing Year

2019

Thesis Completion Status

Completed

Subject

Management Sciences

Language

English

Link

http://prr.hec.gov.pk/jspui/bitstream/123456789/12470/1/Final%20Thesis%20%28FA11-PMS-002-ISB%29.pdf

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676724655047

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The adoption of explicit deposit insurance increases the moral hazard of bank’s risktaking triggered by the reduction in depositors’ discipline. In the light of economic and contract theories, the main objectives of this study are; to analyze whether the implementation of risk-adjusted deposit insurance premium shrinks the bank’s risktaking, to examine that the allocation of appropriate supervisory powers and suitable supervision structure to a banking supervisor reduces the bank’s risk-taking, to scrutinize whether to allocate the additional supervisory power to a deposit insurer in the presence of banking supervisor which more likely to decreases the moral hazard of bank’s risk-taking. This study comprises the secondary data of publically traded deposit-taking banks of 125 countries from 2002 to 2014 period. In this scenario, the bank-level data is collected from the Bankscope database while country-level data is collected from the surveys of World Bank and global financial development database. This study uses the Hierarchical Linear Modelling (HLM) technique which takes into account the nested effect of the dataset. The findings reveal that enactment of risk-adjusted deposit insurance premium decreases the moral hazard of bank’s risk-taking initiated by the adoption of explicit deposit insurance. Though, this effect is higher for the small banks as compared to large banks. Furthermore, the allocation of greater supervisory powers to a banking supervisor, reduces the moral hazard of bank’s risk-taking in non-crisis affected countries and uplifts the financial health of banks in both crisis and non-crisis affected countries. Moreover, a central bank with greater supervisory powers, appears to mitigate the moral hazard of bank’s risk-taking adopted by explicit deposit insurance. Whereas, the allocation of low supervisory powers to a central bank has a little or no impact on the bank’s risk-taking. The allocation of supervisory powers to a deposit insurer decreases the moral hazard of bank’s risk-taking and enriches the bank’s soundness in non-crisis effected countries. Furthermore, the allocation of additional supervisory powers to a deposit insurer, appears as the additional force to mitigate the moral hazard of bank’s risk-taking in the presence of a banking supervisor. However, this effect is more significant in non-crisisaffected countries. Therefore, the regulatory institutes can reform their strategies and surveillance policies under the verdicts of this study, as it intensifies the depositors and investors’ confidence in the banking system around the globe.
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نیل کنارے دو دل ہارے

نیل کنارے دو دل ہارے

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ختم نبوت تورات و انجیل کى تعلیمات کى روشنى میں

Seal of Prophet-hood (Khatam-e-Nabuwat) is one of the critical issues which Islam has particularly emphasized to such a degree that a person cannot enter in the fold of Islam or may remain a Muslim without it. People, who believed in Torah & Gospel also believed that a prophet of mercy will descend with clear signs of prophet-hood. He will lead the world and guide them to the righteous path and will disclose the changes in Gospel. They also believed that the Prophet Muhammad (PBUH) will reveal the prophet-hood of Jesus and confirm that Jesus is a man of Allah with bestowed miracles. The world knows that the complete code of life after Moses was given only to the last Prophet Muhammad (PBUH). The prophet-hood has been sealed with Hazrat Muhammad (PBUH) is proven from Holy Quran as well as from Torah & Gospel. Torah & Gospel openly declare the prophet-hood of Hazrat Muhammad (PBUH) as “The Stone of Corner”. So the Holy Prophet (PBUH) himself announced the seal of his prophet-hood which none of the prophets of Bani Israel claimed in their lives. The prophet Jesus (A.S) also made efforts to clarify this point in front of his followers through several parables. These parables openly depict the authenticity of Islam and Hazrat Muhammad (PBUH) being the seal of prophets. This article provides information regarding predictions about Hazrat Muhammad (PBUH) as the last and final of the prophets of Allah Almighty, through Old & New Testaments as justified by Holy Quran. It also explains the status and value of the belief of “Finality of Prophet-hood” according to the Islamic teachings.

Investigation into Health and Environmental Hazards of Pesticides Use to Farming Community in Khyber Pakhtunkhwa, Pakistan

Pesticide is any agent used to kill or control pest thus helps in preventing crops from being harmed by insects, weeds or pathogens etc. Besides their advantages, the pesticides may cause unfriendly effect both on health and environment if not dealt with care. Human health and environmental risks associated with pesticide exposure are a global concern. The present study was thus an endeavor to investigate the health and environmental hazards of pesticides use to farming community in Khyber Pakthunkhwa, Pakistan. The prominent objectives of the study was investigate the toxic pesticides used by farming community in reference to the WHO toxicity classes, health and environmental risk to farmers due to improper use, possible ways to reduce the use of pesticides and part of Agriculture Extension Department in judicious use of pesticides.Cross sectional survey design was utilized as a part of the current investigation. Four union councils through multistage sampling technique was selected i.e. UC Band Kurai, Khanmai, Baffa and Baidara from districts D.I.Khan, Charsadda, Mansehra and Swat respectively. Sample size of 384 respondents was selected for the present study. SPSS ver. 20 were used for analysis of data collected. Simple frequencies, percentages were calculated whereas chi-square test, t-test and binary logistic regression model was utilized. Statistical analysis of the data revealed that majority of the respondents were using pesticides from the last 10 years. The respondents were not using proper personal protection measures while using pesticides and re-enter their fields the following day thus increases the odds of health issues to the farming community and were suffered from various acute poisoning cases i.e. headache, sneezing, cough, nausea, dizziness, feeling weak, difficulty in seeing, eye irritation, shortness of breath, burning sensation etc. Moreover, the knowledge of the farming community regarding the health and environmental hazards was also low. Overall 49 different sorts of pesticides were reported by the farming community as the most commonly used by them and majority were insecticides. Mostly the insecticides were from Class-II (moderately hazard) of the pesticides toxicity level followed by the Class III (slightly hazard) and Class U (unlikely to present acute hazard). Only two insecticides i.e. Carbofuron and Cartap from Cartap Hydrochloride chemical group were from Class-Ib which are highly hazardous. Moreover, number of sprays in field crops were low as compared to vegetables and fruits and mostly they pick their produce in 3-5 days of pesticides application in vegetables and fruits.Similarly the other unhealthy practices of pesticides observed were the re-spray of the leftover pesticides in the same season or in the upcoming season which results in increase in number x of sprays per season. Disposing the left over pesticides in field or solid waste and overdosing & low dosing against the prescribed/recommended was also an un healthy practice recorded during the study which was due to the fact that majority of the respondents had less knowledge about the prudent use of pesticides and not checking and following the guidelines on labels. In this connection the role of the Agriculture Extension Department (AED) was also not palatable. Almost half of the respondents got training regarding the pesticides application, and other health and environmental issues related to pesticides but still the respondents were not fully aware of the healthy practices which showed that the office didn‘t not completely conferred or imparted the knowledge about the highly toxic pesticides, calibration of pesticides, pesticides application techniques, safety measures, understanding the labels/instructions on pesticides containers and so forth to the respondents. It is concluded that farmers on account of less extension services regarding pesticides, uses the pesticides improperly, having no idea of proper selection of pesticides and their application time. This improper use causes various health hazards like nausea, vomiting, headache etc. it was also concluded that farmers were not been trained properly. Therefore it is suggested that farmers should be properly trained for the safe and efficient use of pesticides. Furthermore, it is also suggested that the Agriculture Extension Department ought to strictly check the sub-standard and highly toxic pesticides in the market.