English, Article edition: Banking for the poor: the role of Islamic banking in microfinance initiatives Asyraf Wajdi Dusuki

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/22570
Physical Description
  • article
Language
  • English

Edition details

Title
  • Banking for the poor: the role of Islamic banking in microfinance initiatives
Author
  • Asyraf Wajdi Dusuki
Physical Description
  • article
Notes
  • Purpose – The main purpose of this paper is to review the microfinance scheme and discuss how Islamic banks can participate in such an endeavour without actually compromising the issue of institutional viability and sustainability. Design/​methodology/​approach – The paper is based on an extensive review of microfinance with the objective of building a case for Islamic banking to participate in a microfinance initiative. Findings – As reviewed in this paper, microfinance requires innovative approaches beyond the traditional financial intermediary role. Among others, building human capacity through social intermediation and designing group-based lending programmes are proven to be among the effective tools to reduce transaction costs and lower exposure to numerous financial risks in relation to providing credit to the rural poor. This paper also suggests the use of a special purpose vehicle (SPV) as one of the possible alternatives for Islamic banks channelling funds to the poor. Research limitations/​implications – Islamic banks may benefit from the spectrum of Shariah-compliant sources of funds and offer a wide array of financing instruments catering for different needs and demands of their clients. Furthermore, the use of a bankruptcy-remote entity like SPV can protect Islamic banks from any adverse effect of microfinance activities. Originality/​value – The analysis here is valuable in drawing the attention of Islamic banking practitioners to the fact that they can actually practise microfinance without undermining their institutional viability, competitiveness and sustainability. This is evident from the proposed model to incorporate SPV into their microfinance initiatives.
  • Banking, Disadvantaged groups, Financial services, Islam, Poverty
  • RePEc:eme:humpps:v:24:y:2008:i:1:p:49-66
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment