Risk management and the implementation of the Basel Accord in emerging countries: An application to Pakistan.

This paper addresses an important contemporary issue; namely the implementation of the Basel Accord worldwide. The Basel Accord provides a series of measures to improve the stability of the world’s financial system but its implementation poses a number of challenges for both developing and emerging economies. Pakistan faces a number of unique challenges in this regard due to its recent economic expansion and the fact that the rate at which the Basel Accord is being adopted lags behind that of other countries. This paper throws light on this and a number of related issues due to a combination of the novelty of the survey data from risk managers coupled with a rigorous statistical analysis. Results reflect that the Basel Accord is generally well regarded due to its underlying aims of improved capital standards and a scientific treatment of risk. However, operational risk emerges as a key barrier to implementation in Pakistan. A number of further obstacles are highlighted, which, do seem to have been addressed although only with a partial degree of success. Privately owned banks appear to be more technically competent and more favourably disposed towards implementation than publicly owned banks.Risk Management; Basel Accord; Banking; Financial Regulation; Emerging Markets

How do large commercial banks adjust capital ratios: empirical evidence from the US?

This research explores the balanced panel data to examine the level of capital adjustment for major insured commercial banks over the 2002-2018 period using a two-step GMM estimator. The findings show that the speed of adjustment of the large insured commercial banks is faster than that of non-financial companies. The results contribute to a slower average adjustment pace of a total capital ratio than the total risk-based capital and capital buffer ratios. The adjustment of capital is faster in the post-crisis period than during and before-crises era. The adequately capitalized banks adjust capital ratio faster than well-capitalized banks. In contrast, the under-capitalized banks adjust the total risk-based capital ratio and capital buffer ratio more quickly than that of others. The low liquid banks needed a higher time to restore equilibrium than high liquid banks. The results of this study have economic significance for policy implications and future regulations

Legal Issues in Implementing E-Commerce in GCC Countries from the Perspective of Financial Managers

Introduction to The Problem: This study explains the concept of legal risk in marketing in e-commerce world as there is currently insufficient research studies on the concept despite its critical importance in influencing the behaviour of consumers.Purpose/Objective Study: The problem statement/purpose of study is to explain that what are the different barriers faced by financial managers during an uncertain and legal risky situation.Design/Methodology/Approach: The study utilizes both primary and secondary data from Gulf Cooperation Council (GCC) countries in order to get reliable results. There are different risk factors that affect the purchasing behaviour of consumers who shop online. The consumer’s perception of risk may be the result of all the emotional processes through which consumers recognize, organize and provide meaning to sensations received, such as the need for product quality, safety online and overall satisfaction. The primary data consists of a survey of online shoppers. The research data and questionnaire were administered to 972 GCC internet users who are classed as experienced and avid users. The secondary data includes an analysis of the various theories of consumer behaviour, models of online adoption, legal risk factors to marketing and shopping online, models of the adoption of innovation and new ways of marketing and trade. Both techniques are utilized to examine the relationship between perceived risk strategies and customer satisfaction as well as examined the customer involvement and propensity to take risk on existing relation of online shopping.Findings: According to study results, legal risk is very important in GCC countries which ultimately influence the customer involvement, satisfaction and purchasing behaviour. GCC countries should attempts to create a coherent legal and regulatory framework (like Lessons can be learnt from the EU). It will help to reduce the legal risk and remove the obstacles to the growth of e-commerce in GCC countries by affirming a certain level of transparency by imposing prior information requirements for electronic contracts, as well as regulating commercial communication and advertisements and regulating consumers' technical errors.Paper Type: Research Articl

How political risks and events have influenced Pakistan’s stock markets from 1947 to the present

In this paper, we analyse Pakistan’s political risks and events that have affected the country’s stock markets since 1947. We collected data in the form of questionnaires from historians, economists, politicians, government officials, bankers and stock market analysts in Pakistan and make forecasts using Bayesian hierarchical modelling and Markov Chain Monte Carlo (MCMC) techniques. Findings show that the probability of an event in any year is relatively high with an average arrival rate of 1.5 events per year with no time trend. In addition, forecasts suggest that the level of political risk should be remaining unchanged for the foreseeable future. Finally, we find that Pakistan’s political risk carries a risk premium of between 7.5% and 12%

Impact of oil prices on stock return: evidence from G7 countries

International audienceThe aim of the study is to investigate the impact of oil prices on the stock market of G7 countries. Oil prices not only affect the economy of a country but also the country's stock market. The stock market affects the stock valuation or, to put in another way, the company's stock value. The stock value is associated with the discounted sum of predictable future cash flows and these flows may be distressed by macroeconomic variables including oil prices fluctuations. This study has researched the impact of oil prices' fluctuation on countries included G7, i.e.. For the analysis, the most recent data is collected. In this study, the real stock return has considered as a depended variable or predict variable, while oil prices, industrial production, and short-term interest rate are as independent, or predictor variables. The study is quantitative in nature. All data was collected from OECD website with the exception of oil prices, which were taken from oil intelligence report. The model, which has been used in the study is based on Arbitrage pricing theory-APT model, where financial assets are associated with macroeconomic variables. The results showed that Industrial production is positively associated with a real stock return in the case of Germany, Italy, Japan, the United Kingdom, and France, while the short-term interest rate is negatively connected with a real stock return in the case of Canada, the United Kingdom, and United States of America. Oil prices have an insignificant effect on real stock markets of all considered countries. The authors provide an economic interpretation of the obtained results

Input Efficiency of Financial Services Sector: A Non-parametric analysis of Banking and Insurance Sectors of Pakistan

Purpose In an attempt to enrich the literature of the efficiency of financial services sector with holistic perspective, this study aims to empirically investigate the input efficiency of banking and insurance sectors with further probe into Islamic segments of these sectors in Pakistan.Design/methodology/approach This study measures the technical, allocative, cost, and scale efficiencies of banking and insurance firms in our sample using the non-parametric frontier method, data envelopment analysis (DEA).Findings The findings show that, on average, the allocative efficiency of the overall Islamic financial services sector has increased during the period of study and has also remained well above their conventional counterparts. The study also revealed that, insurance sector is more technically efficient than banking sector. Finally, the study also found that overall efficiency of financial sector can also be improved by exchanging experts between two sectors.Originality/value The results of this research study provide empirical findings as to how two segments of Financial Services Sectors had fared in the competitive environment from 2007 to 2015

Smart meter: Toward client centric energy efficient smartphone based solution

© 2016 IEEE. Smart city applications are developed to facilitate the urbanization and massive development all over the world. This is achieved with real time responses to challenges faced by different sectors, such as health, transportation, water and energy. Smart meter is one of the smart city applied solutions, which facilitates to overcome the increased demand on electricity. This research examines smart meter in the context of energy sector to exploit its related features in the process of Demand Side Management (DSM) to facilitate energy efficiency. A smartphone application is developed that facilitate integration of client in DSM for energy efficiency. The feasibility of such application is reflected on the smart meter business model adopted in Abu Dhabi. Consequently, fundamentals are established to initiate cost-benefit analysis to evaluate the rolling out of advanced metering infrastructure

Consumption of Family Takaful affected by Microeconomic Factors: A Case Study of Islamic insurance Takaful in Pakistan

This study empirically verifies the link between macroeconomic variables (i.e. income per capita, savings, inflation, stock and index) with the demand for Family Takaful in the context of Pakistan using time-series data from 2006 to 2016 of Pak-Qatar Family Takaful Company and Dawood Family Takaful Company. It was concluded from this study that per capita income is a strong forecaster of Family Takaful demand in Pakistan, while other macro-economic factors such as KSE composite index has significant and positive relationship with Takaful demand in Pakistan. The other three variables i.e. saving, interest rate and inflation are having insignificant relationship with Family Takaful demand in Pakistan

Segmental excision versus intralesional curettage with adjuvant therapy for giant cell tumour of bone

Abstract PURPOSE: To review the functional outcome and local recurrence rate of 29 patients who underwent segmental excision or intralesionalcurettage with adjuvant therapy for giant cell tumour (GCT) of bone. METHODS: Records of 17 men and 12 women (mean age, 30.17 years) who underwent segmental excision (n=18) or intralesional curettage followed by adjuvant therapy (n=11) for GCT of the femur (n=13), tibia (n=8), radius (n=6), or ulna (n=2) were reviewed. Nine of the patients had recurrent GCT of bone and had undergone segmental excision (n=6) or intralesional curettage (n=3) elsewhere. Functional outcome was evaluated using the Musculoskeletal Tumour Society (MSTS) scoring system. RESULTS: The mean follow-up period was 6.4 (range, 3-13.5) years. 14 patients were followed up for 3 to 5 years, 12 for 5 to 10 years, and 3 for \u3e10 years. Of 20 patients with primary GCT of bone, 12 underwent segmental excision and had no recurrence, and 8 underwent intralesional curettage, 2 of whom developed local recurrence. Of the remaining 9 patients with recurrent GCT of bone, there was one re-recurrence in each surgical option. Local recurrence was not associated with Campanacci grading or type of surgery. One of 18 patients with segmental excision and 3 of 11 patients with intralesional curettage had local recurrence (5.6% vs. 27.3%, p=0.139). The MSTS score was excellent in 7, good in 6, moderate in 2, fair in 2, and poor in one patient after segmental excision, whereas the score was excellent in 9 and good in 2 patients after intralesional curettage (p=0.206). The proportion of yielding an excellent outcome was higher after intralesionalcurettage (38.9% vs. 81.8%, p=0.0289). Nonetheless, the mean MSTS score of the 2 groups was comparable (74.17% vs. 86.36%, p=0.054). CONCLUSION: Local recurrence of GCT was not associated with the surgical option. Nonetheless, intralesional curettage resulted in better functional outcome