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.

Human Capital Development and Employee?S Performance and Affective Commitment in City District Government Metropolitan Corporation of Lahore

The main impartial of the research is to know the consequence of human capital development on employee affective commitment and performance in the City district government (Metropolitan Corporation). The research is precisely limited to the City district government (Metropolitan Corporation) of Lahore. City district government (Metropolitan Corporation) as a municipal service institution with the expertise to encourage the smooth and actual administration of basic facilities to all protocols of persons living in Lahore. The study was descriptive and quantitate in nature and simple random sampling used for selection of 666 staff member and for 45 management personnel. Data was evaluated based on descriptive statistics, linear regression, alpha and correlation over SPSS.Results show that HCD practice has a constructive influence on employee performance and affective commitment. The primary data collected to request answers directly from the field. All cases were assessed along a five-level (Likert) scale, which ranged from 1, "Strongly Agree" to 5, "Strongly Disagree." The survey recommends that management should evaluate the quota system, organize periodic training programs, assigned more resource for training and growth. Performance measurement programs to improve the level of development of employees, which, in fact, will make employees more focused on the organization. In conclusion, the research shows that employees are dynamically involved in HCD practices. Performance measurement should become a fundamental part of management processes, so the local government needs to use performance measurement as a statistical tool to ensure its quality services. The study also delivered the limitations and recommendations for future research.