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.

Molecular Characterization of Pathogens Associated With Citrus Gummosis Form Major Citrus Growing Areas of Punjab

The worldwide increase of citrus cultivation has contributed a lot in the emergence of various diseases. Gummosis is one of the most important disease of citrus caused by several species of Botryosphaeriacae most prominent Lasiodiplodia spp. along with some other species of genus Phytophthora and Fusarium. The objective of this study was the molecular identification and characterization of pathogens associated with citrus gummosis from major citrus growing areas of Punjab, Pakistan. This study included collection of diseased samples followed by isolation, morphological identification, molecular characterization, pathogenicity and virulence comparison of associated fungal pathogens. To identify the causal pathogens of citrus gummosis, symptomatic diseased bark tissues were collected from thirty localities of five major citrus production areas of Punjab. Lasiodiplodia spp. (Lasiodiplodia pseudotheobromae, Lasiodiplodia theobromae) Fusarium spp. (Fusarium equiseti, Fusarium solani, Fusarium lateritium, Fusarium proliferatum) were isolated from diseased samples. Preliminary identification of isolated fungi was based on morphological and cultural characters. For molecular identification and characterization nucleotide sequences of the ITS region (ITS1-5.8S-ITS2) and partial sequence of the β-tubulin gene was targeted. Pathogenicity analysis of all the isolated species were performed on Citrus jambhiri cultivar which is commonly used rootstock in Punjab. L. pseudotheobromae and L. theobromae both produced typical symptoms of citrus gummosis. L. pseudotheobromae found more virulent than L. theobromae. These findings confirm that L. pseudotheobromae and L. theobromae are primary cause of citrus gummosis in Punjab, Pakistan. Fusarium species failed to produce any symptoms. Fusarium spp. has no role in disease development however it could be a secondary invader or saprophytic. Although association of different species of Phytophthora genus with this disease is reported from different parts of the world but it was not successfully isolated after numerous recommended attempts. This study provides new information for future studies of disease management, quarantine programs and especially the development of resistant varieties against citrus gummosis.