Anti Money Laundering Mechanism: An Application of Principal-Agent Model for Pakistan

In this paper anti money laundering policy of the international financial regime is analyzed in principal agent model perspective. The strategy of the principal for formal agents is deliberated for global financial stability. This strategy encompasses incentive and dis-incentive for cooperation of formal agent. Formal agent by cooperating with principal may induce dis-incentive for informal agent. All the integrating stake holders make decision on the basis of comparison of present value of marginal cost of non-cooperation and present value of returns from cooperation. As the desired objective of the principal is to minimize transaction of money through informal channels therefore it has to include informal agents and clients in the strategy. The successful anti money laundering strategy can only be evolved by the cooperation of all the stakeholders.International Financial Regime, Principal Agent model and Money Laundering

Global Microscope on the Microfinance Business Environment 2010: An Index and Study by the Economist Intelligence Unit

This report outlines the findings of the Economist Intelligence Unit¿s in-depth analysis of the microfi nance business environment in 54 countries. The index that underlies this report allows countries and regions to be compared across three broad categories: regulatory framework, institutional development and investment climate. The study uses a methodology which was originally developed for Latin America and the Caribbean in 2007 and was employed for the fi rst time on a global basis in 2009. Most of the research for this report was conducted prior to May 2010, although some later developments (up to July) were included where they were particularly signifi cant.Microbusinesses & Microfinance

Knowledge Management Practice at a Bulgarian Bank: A Case Study

This paper reports on knowledge management (KM) practices in the customer service and lending departments of one of Bulgaria's top retail banks and investigates how KM processes can be further improved. The Bank's KM activities have been studied using observations, interviews and informal discussions for data collection. Findings were compared and contrasted with existing literature in similar contexts. Although rudiments of knowledge sharing are evident from the KM activities in different departments of the bank, the limitations such as resistance to change of the implemented KM systems are impeding the effectiveness of the knowledge management process. More training and incentives are needed to increase knowledge creation and sharing. Moreover, a clearly articulated KM strategy along with success criteria and commitment and support from senior management is needed. There is a severe lack of knowledge management studies in Bulgarian context in general and Bulgarian banking sector in particular. The authors' findings will potentially help in improving knowledge sharing practice as well as provide a valuable insight into knowledge management related issues in the Bulgarian context. The findings from this research can be useful to companies from Eastern Europe and other regions in improving their knowledge sharing practice

Corporate governance in institutions offering Islamic financial services : issues and options

This paper reviews institutions offering Islamic financial services (IIFS) corporate governance challenges and suggests options to address them. It first points out the importance of corporate governance for IIFS, where it would require a distinct treatment from conventional corporate governance and highlights three cases of distress of IIFS. It then dwells on prevailing corporate governance arrangements addressing IIFS'needs to ensure the consistency of their operations with Islamic finance principles and the protection of the financial interests of a stakeholders'category, namely depositors holding unrestricted investment accounts. It raises the issues of independence, confidentiality, competence, consistency, and disclosure that may bear on pronouncements of consistency with Islamic finance principles. It also discusses the agency problem of depositors holding unrestricted investment accounts. The paper argues for a governance framework that combines internal and external arrangements and relies significantly on transparency and disclosure of market relevant information.Banks&Banking Reform,Corporate Law,Non Bank Financial Institutions,Investment and Investment Climate,Privatization

Pakistan lags behind in technical textile

This paper highlights and demonstrates the technical and economical impact of technical textiles in the industrially developed countries and their future contribution to the development of economics of newly developing countries, such as China, South East Asia, and North Africa etc. Pakistan still lags behind in technical textile products as neither the government nor the textile industry has made any serious efforts towards synchronizing textile products with the emerging needs of the world market by developing higher value-added products. Although the textile sector is the backbone of Pakistan’s economy, the Government as well as the textile industry has kept their focus on conventional textiles, ignoring technical textiles and knowledge-based products. A special focus is placed on the application of technical textiles related automotive, medical, construction/civil engineering and sportswear’s fields.

The State of Marketing in Leading MNC’s and their Local Competitors in Pakistan : Findings of a Baseline Survey

The objective of this research is to assess the state of marketing practices in leading multi-national companies operating in the country and their local competitors. This paper presents the findings of the first phase of the study. These findings are based on personal interviews with forty-three MNCs. The findings reveal that companies varied significantly with regard to marketing practices and processes --- both in terms of engaging in different practices and processes but also in terms of the level of marketing sophistication. This difference was found in companies within as well as across industry sectors. While such differences were expected, the extent of such differences was deemed to be significant, given that the participating firms were leading MNCs. Based on the framework for documenting marketing practices and processes, profiles were developed for the best company in each of the chosen industry sectors. The basis for identifying the top companies was the breadth and depth of marketing practices and processes reported. Five profiles of top companies (one from each sector) were developed. These profiles show the level of marketing sophistication and could represent a benchmark for other companies.Marketing Practices in Pakistan, Marketing Sophistication, Marketing Benchmarking, Marketing Practices in Multinational Companies (MNCs) in Pakistan

FinTech, blockchain and Islamic finance : an extensive literature review

Purpose: The paper aims to review the academic research work done in the area of Islamic financial technology. The Islamic FinTech area has been classified into three broad categories of the Islamic FinTech, Islamic Financial technology opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. Finally, the study identifies and highlights the opportunities and challenges that Islamic Financial institutions can learn from the conventional FinTech organization across the world. Approach/Methodology/Design: The study collected 133 research studies (50 from Social Science Research Network (SSRN), 30 from Research gate, 33 from Google Scholar and 20 from other sources) in the area of Islamic Financial Technology. The study presents the systematic review of the above studies. Findings: The study classifies the Islamic FinTech into three broad categories namely, Islamic FinTech opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. The study identifies that the sharia compliance related to the cryptocurrency/Blockchain is the biggest challenge which Islamic FinTech organizations are facing. During our review we also find that Islamic FinTech organizations are to be considered as partners by the Islamic Financial Institutions (IFI’s) than the competitors. If Islamic Financial institutions want to increase efficiency, transparency and customer satisfaction they have to adopt FinTech and become partners with the FinTech companies. Practical Implications: The study will contribute positively to the understanding of Islamic Fintech for the academia, industry, regulators, investors and other FinTech users. Originality/Value: The study believes to contribute positively to understanding of Fintech based technology like cryptocurrency/Blockchain from sharia perspective.peer-reviewe

FinTech implementation: a way forward to expedite bank operations

The purpose of this study was to investigate the impact of FinTech implementation on operational performance in the banking industry of Pakistan. Using Smart PLS analysis, the study examined the relationship between FinTech implementation and three dimensions of operational performance: accuracy, effectiveness, and efficiency. Data was collected from employees working in commercial banks in Pakistan through a self-administered questionnaire. The results of the study revealed that FinTech implementation has a positive effect on operational performance, as evidenced by the significant positive relationships between FinTech implementation and accuracy, effectiveness, and efficiency. These findings suggest that the implementation of FinTech solutions can significantly improve operational performance in the banking industry, and that investing in FinTech solutions can lead to improved competitive advantage, enhanced customer experience, and reduced costs. The study concludes with recommendations for banks in Pakistan to adopt FinTech solutions to achieve operational excellence, and suggests areas for future research to further explore the impact of FinTech on operational performance in the banking industry

Corporate governance and stakeholders'financial interests in institutions offering Islamic financial services

This paper focuses on the corporate governance arrangements of institutions offering Islamic financial services (IIFS) aimed at protecting stakeholders'financial interests. Many IIFS corporate governance issues are common with those of their conventional counterparts. Others are distinctive. In particular they offer unrestricted investment accounts that share risks with shareholders but without a voting right. This paper first reviews internal and external arrangements put in place by IIFS to protect stakeholders'financial interests. It discusses shortcomings notably in terms of potential conflict of interest between shareholders and holders of unrestricted investment accounts. It then suggests a corporate governance framework that combines internal and external arrangements to provide safeguards to unrestricted investment account holders without overburdening IIFS'financial performance. The paper uses a review of 13 IIFS and regulatory information from countries where IIFS have developed the most.Banks&Banking Reform,Financial Intermediation,Corporate Law,Non Bank Financial Institutions,Investment and Investment Climate