The GENE-alogy of Mawakhat/solidarity

Saqib, Muhammad Amjad; Malik, Aneeqa

doi:10.4324/9781315183282-7

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“…This category of loans falls under humanitarian loans, which are intended to help the most impoverished people overcome their financial difficulties. The concept of Qard-al-Hasan has been implemented in Pakistan by Akhuwat , one of the largest Islamic MFIs in the country (Bashir et al , 2019; Harper, 2012; Khan et al , 2018; Saqib and Malik, 2018) [12]. Akhuwat has observed a better loan recovery rate (around 99%), enhanced financial performance, reduced operational costs and increased loan disbursement for the past several years (Bashir et al , 2019; Khan et al , 2018).…”

Section: Resultsmentioning

confidence: 99%

The transformation of conventional microfinance into Islamic microfinance in Bangladesh: proposed Shariah-based model(s)

Mia

2023

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Purpose Despite being a Muslim-dominated country, Bangladesh has widely embraced traditional microfinance since its inception in the mid-1970s. However, Islamic microfinance, which has a lot to offer to the poor, is still in its infancy and has yet to gain momentum in the country. Therefore, the purpose of this study is to analyze the importance of Islamic microfinance and propose alternative Shariah-compliant microfinance models in Bangladesh. Design/methodology/approach This study is based on the desk research method, which relies on existing literature to collect secondary data on key concerns of traditional microfinance programs. In addition, institutional-level secondary data were also collected from the Microcredit Regulatory Authority (MRA) of Bangladesh. Guided by the Maqasid-al-Shariah, this study then proposes several Islamic microfinance models to overcome selected challenges faced by the microfinance industry in Bangladesh. Findings This study suggested three composite Shariah-compliant microfinance models, which are likely to help the underprivileged and thus ensure the achievement of the sustainable development goals in Bangladesh. The first model explained how the operational strategy of incumbent microfinance institutions (MFIs) could be restructured, while the second proposed the organizational strategies for establishing a new MFI. The third model used the notion of Sadaqah (charity) to address the multiple borrowing issues of the industry. Meanwhile, the successful transformation of the conventional microfinance industry to an Islamic one is dependent on the effective collaboration between the regulatory authorities, practitioners and MFIs. Originality/value Albeit the paucity of literature on the topic, the findings of this study will guide policymakers/practitioners in designing relevant microfinance models to help transform conventional microfinance into Islamic microfinance in Bangladesh.

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Section: Resultsmentioning

confidence: 99%

The transformation of conventional microfinance into Islamic microfinance in Bangladesh: proposed Shariah-based model(s)

Mia

2023

QRFM

View full text Add to dashboard Cite

show abstract

The GENE-alogy of Mawakhat/solidarity

Cited by 1 publication

References 0 publications

The transformation of conventional microfinance into Islamic microfinance in Bangladesh: proposed Shariah-based model(s)

The transformation of conventional microfinance into Islamic microfinance in Bangladesh: proposed Shariah-based model(s)

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