Lucrative Role of Financial Institutions on Willful Default - Financial Risk, and Fiscal Recovery: Evidence from Judgements of Apex Courts in Pakistan

Authors

  • Majid Imdad Khan Ph. D Finance (Scholar), Department. of Management Sciences, COMSATS University Islamabad (CUI), Lahore Campus, Punjab, Pakistan
  • Zeeshan Bashir Lecturer Management/Commerce, Government College of Technology Pindi Bhattian Punjab, Pakistan
  • Hina Amir Assistant Professor, Department of Economics, COMSATS University Islamabad (CUI), Lahore Campus, Punjab, Pakistan

DOI:

https://doi.org/10.47205/jdss.2023(4-II)60

Keywords:

Apex Courts, Federal Investigation Agency, Financial Institutions Ordinance, State Bank of Pakistan, Willful Default

Abstract

The study theoretically supports financial institutions regarding financial risk which can criminally proceed against customers, expose willfully default-financial risk or not? The FIO, 2001 and judgments of Apex Courts have privileges i.e. fiscal recovery of suits under FIO, 2001, Code of Civil Procedure (1908-Act, V), Code of Criminal Procedure (1898-Act, V) and judgements of Apex Courts. These are the domains on Willful Default financial risk. Overall results explored that FIO, 2001, Order 37 of CPC and judgments of Apex Courts support to protect rights and interests of financial institutions through Banking Courts but initiation of criminal proceedings shall be through investigation agencies (FIA and NAB), appointed by Federal Government section 20 (7) of FIO, 2001 and action accordingly. The theoretical view has important implications for financial institutions that they may consider FIO, 2001 as a safer flight during criminal proceedings through investigation agencies against customers with respect to Willful Default (WD) financial risk, and fiscal recovery. Moreover, the regulators may decide to control the financial position of banks due to willful default financial risk.

Downloads

Published

2023-05-17

Details

    Abstract Views: 183
    PDF Downloads: 225

How to Cite

Khan, M. I., Bashir, Z., & Amir, H. (2023). Lucrative Role of Financial Institutions on Willful Default - Financial Risk, and Fiscal Recovery: Evidence from Judgements of Apex Courts in Pakistan. Journal of Development and Social Sciences, 4(2), 683–691. https://doi.org/10.47205/jdss.2023(4-II)60