The Loan Shark in ASEAN

Musari, Khairunnisa

doi:10.4018/978-1-7998-2257-8.ch012

Cited by 4 publications

(3 citation statements)

References 20 publications

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“…Similar to other countries in the ASEAN region, MSMEs make up a big portion of the total enterprises in Brunei (almost 97%) yet they have only contributed 44% to employment and 35% to the Gross Domestic Product (GDP) of Brunei. Access to finance has been identified as one of the top three hurdles faced by these MSMEs (Sani, 2018; Musa et al ., 2020). MSMEs in the Asian region rely greatly on banks for external financing as the financial systems and capital markets in the region are not well developed (Beck et al., 2008; Yoshino and Taghizadeh-Hesary, 2015), therefore access to finance is an important ongoing issue.…”

Section: Methodsmentioning

confidence: 99%

“…(2011) found that 76% of MSMEs in Brunei have difficulty accessing financing, and the majority obtain loans from internal sources such as friends and family, while only 18% obtain financing from local banks and 5.4% from foreign banks. MSMEs in Brunei prefer to borrow money from family and friends rather than from the bank as the MSMEs are not able to fulfill bank requirements (Musa et al ., 2020).…”

Section: Methodsmentioning

confidence: 99%

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Influence of human capital and social capital on MSME access to finance: assessing the mediating role of financial literacy

Hj Talip,

Wasiuzzaman

2023

IJBM

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PurposeThe authors investigate the role of financial literacy in influencing the relationship between human capital and social capital, with access to finance of micro, small and medium enterprises (MSMEs).Design/methodology/approachData were gathered from 337 MSMEs in Brunei Darussalam, and analysis on the data was carried out using a number of statistical methods. The relationships between human capital, social capital, financial literacy and access to finance were analyzed using PLS-SEM.FindingsThe results show that human capital does influence access to finance but contrary to previous studies, the influence is negative. Financial literacy is an important element in the relationship between human capital, social capital and access to finance, although it plays a greater role in the relationship between social capital and access to finance. Further analysis shows that financial knowledge is significant in moderating the relationships between human and social capital with access to finance. Financial skills is found to only moderate the relationship between social capital and access to finance.Originality/valueTo the authors' knowledge, this study is the first that integrates the human capital, social capital, financial literacy and access to finance in a single model. The authors also highlight the importance of enhancing the financial literacy of MSMEs so that the problem of access to finance can be alleviated, especially in developing countries.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Influence of human capital and social capital on MSME access to finance: assessing the mediating role of financial literacy

Hj Talip,

Wasiuzzaman

2023

IJBM

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“…Unfortunately, these unethical, abusive, inflexible, unfair and unforgiving debt collection practices are still commonly used by payday lenders, as described in academic literature (Baradaran, 2020; Bremner, 2010; Hosie et al , 2017; Stifler, 2017). Not only have consumers in the USA experienced these practices (Baradaran, 2020; Bremner, 2010; Hosie et al , 2017; Soederberg, 2018; Stifler, 2017), but they have also been reported in other parts of the world, such as Canada (Robinson and Robinson, 2018), UK (Fejős, 2015), Australia (Chen, 2020), China (Tong, 2017) and Indonesia (Musari, 2020).…”

Section: Introductionmentioning

confidence: 99%

Behind the curtain of payday lending: revealing consumer insights and ethical challenges in Indonesia and the USA using web-scraping methods

Hati¹,

Latip²

2023

IJOES

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Purpose This paper aims to explore the consumer insights and ethical concerns surrounding the online payday loan services available in the Google Play Store. This research was conducted to compare whether the presence or absence of debt collection protection acts in a country creates differences in consumer experiences regarding the ethics of payday loan collection. Specifically, the study compares customers’ experiences in both the Indonesian and US markets. Design/methodology/approach Indonesia and the USA were chosen because they have very different regulatory structures for the payday loan industry. The data was scraped using Python from 27 payday loan apps on the Indonesian Play Store, resulting in a total of 244,697 reviews extracted from the Indonesian market. For the US market, 446,010 reviews were extracted from 14 payday loan apps. The data was further analyzed using NVIVO. Findings The results suggest that consumers of payday loans in Indonesia and the USA hold positive views about the benefits of payday loan apps, as revealed by the word frequency and word cloud analysis. Notably, customers in both countries did not express any negative sentiments regarding the unethical interest rate charged by the payday loan, contradicting what is commonly reported in academic literature. However, a distinct pattern of unethical conduct was observed in both countries concerning marketing communication and debt collection practices. In the Indonesian market, payday loan companies were found to engage in unethical debt collection activities. In the US market, payday lenders exhibited unethical behavior in their marketing communication, particularly through deceptive advertising that makes promises to consumers that are not delivered. Originality/value The study aims to provide evidence on the various experiences of customers in the presence and absence of debt collection regulations using a novel methodology and a large sample, which strengthens the results and conclusions of the study. The study also intends to inform policymakers, particularly the Indonesian government, about the need for specific laws to regulate the debt collection process and prevent unethical practices. Ultimately, the study is expected to protect the rights of consumers from a deceptive marketing communication or unethical debt collection practices in both the Indonesian and US markets.

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Understanding the Behavior of Qardhul Hassan Borrowers in Nano-Entrepreneurship

Musari,

Fajariyah,

Khotimah

2023

Advances in Logistics, Operations, and Management Science

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Most emerging countries have communities categorized as excluded and underserved, unbanked and underbanked, the bottom of the pyramid (BoP), and ultra poor which have no ability to access bank financing. They are often victims of loan sharks. They should be a target of microfinance, but most banks and also microfinance institutions (MFIs) do not yet do well in serving them. Likewise, Islamic microfinance in fact has also not succeeded in reaching these people. Islamic nanofinance through qardhul hassan is promoted as a new paradigm to fill the Islamic microfinance gap. Through a field experiment for eight months by providing a fund IDR5 million with a maximum loan IDR1 million to provide nanofinancing, this study investigated the financial behavior of the nano-entrepreneurs in managing the qardhul hassan in Indonesia. The outcome of this study is expected to be input for policymakers, especially for the Islamic micro-industry, to come up with financing schemes according to the characteristics of these communities.

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The Loan Shark in ASEAN

Cited by 4 publications

References 20 publications

Influence of human capital and social capital on MSME access to finance: assessing the mediating role of financial literacy

Influence of human capital and social capital on MSME access to finance: assessing the mediating role of financial literacy

Behind the curtain of payday lending: revealing consumer insights and ethical challenges in Indonesia and the USA using web-scraping methods

Understanding the Behavior of Qardhul Hassan Borrowers in Nano-Entrepreneurship

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