Experiences of global Islamic microfinance practices: lessons learnt and way forward

  • Authors

    • Salina Kassim
    • Siti Nadhirah Kassim
    • Nadhrah Othman
    https://doi.org/10.14419/ijet.v7i3.35.29291
  • Microfinance, Islamic Finance, Global.

  • Abstract

    Despite the increasing need for microfinance services that are shariah-compliant among the Muslims, growth of the Islamic microfinance industry has not been as encouraging as that of the conventional counterpart. Islamic microfinance accounts for a mere 0.5% of global microfinance, amid the absence of a cost-efficient service model. As a result, financial inclusion rate in most Muslim countries stands at only 27%, with religious requirement being quoted as one of the important obstacles. This study intends to evaluate the current practices of several leading Islamic microfinance institutions globally and learn from their experiences and best practices in efforts to further improve the Islamic microfinance industry in the future.

     

     

  • References

    1. [1] Abdul Rahman, R., Dean, F., 2013. Challenges and solutions in Islamic microfinance. Humanomics, 4(29):293 – 306.

      [2] Al-Amal Microfinance Bank Annual Report, 2015. Retrieved 25 May 2017 from http://www.alamalbank.com.

      [3] Amanah Ikhtiar Malaysia (AIM), 2017. Amanah Ikhtiar Malaysia. Retrieved 29 May 2017 from https://www.aim.gov.my/.

      [4] Crépon, B., Devoto, F., Duflo, E., & Parienté, W., 2011. Impact of microcredit in rural areas of Morocco: Evidence from a Randomized Evaluation. MIT Working paper.

      [5] Fotabong, L. A., 2011. Comparing Microfinance Models: MC2 Model versus Other Microfinance Model. SSRN Electronic Journal, (August), 1–15.

      [6] Honohon, P., 2007. Cross-Country Variations in Household Access to Financial Services. Journal of Banking & Finance, 32(11): 2493–2500.

      [7] Howlader, H. R., 2008. Rural Development Scheme of Islami Bank Bangladesh Limited (IBBL): An Appraisal towards Poverty Eradication in Bangladesh. Journal of Business Administration.

      [8] Karim, N., Tarazi M., & Reille, X., 2008. Islamic Microfinance: An Emerging Market Niche. Focus Note 49. Washington, D.C.: CGAP, August.

      [9] Kazim, S. S., & Haider, S. E., 2012. Islamic Micro-Finance Models and Their Viability in Pakistan. MicroNote, 15(June), 1–12.

      [10] Mannan, M., 2009. BRAC: Anatomy of a “poverty enterpriseâ€. Nonprofit Management and Leadership, 20(2): 219-233.

      [11] Mcphee, C., & St-Onge, A., 2009. Journal of Enterprising Communities: People and Places in the Global Economy for Authors. Journal of Enterprising Communities: People and Places in the Global Economy 3(1): 59–70.

      [12] Mizanur Rahman, M., Jafrullah, & M., Tawhidul Islam, A. N. M., 2008. Rural Development Scheme Of Islami Bank Bangladesh Limited (IBBL): Assessment And Challenges. IIUM Journal Of Economics and Management, 16(2):139-163.

      [13] Naceur, S. B., Barajas, A. & Massara, A. 2015. Can Islamic Banking Increase Financial Inclusion? IMF Working Papers, No. 15/31.

      [14] Obaidullah, M., & Khan, T., 2008. Islamic Microfinance Development: Challenges and Initiatives. Islamic Development Bank, Policy Dialogue Paper N°2.

      [15] Shohrowardhy, H. S., & Alauddin, M., 2015. Contribution of Riba-Free Banking System on Rural Development in Bangladesh: A Projection for Vision-21, 15(8).

      [16] Wasil Foundation. 2017. Connecting People to Opportunities. Retrieved 20 May 2017 from http://wasil.org.pk/guidingbeliefs.aspx

      [17] Zulkhibri, Muhamed. 2016. Financial Inclusion, Financial Inclusion Policy and Islamic Finance, Macroeconomics and Finance in Emerging Market Economies, 9(3): 303-320.

  • Downloads

  • How to Cite

    Kassim, S., Kassim, S. N., & Othman, N. (2018). Experiences of global Islamic microfinance practices: lessons learnt and way forward. International Journal of Engineering & Technology, 7(3.35), 177-180. https://doi.org/10.14419/ijet.v7i3.35.29291

    Received date: 2019-05-16

    Accepted date: 2019-05-16