Journal ArticleDOI
Islamic microfinance: an ethical alternative to poverty alleviation
TLDR
In this article, the authors assess the potential of Islamic financing schemes for micro-financing purposes for furthering socio-economic development of the poor and small entrepreneurs without charging interest (read: riba').Abstract:
Purpose – The purpose of this paper is to assess the potential of Islamic financing schemes for microfinancing purposes.Design/methodology/approach – The paper contends that Islamic finance has an important role to contribute for furthering socio‐economic development of the poor and small (micro) entrepreneurs without charging interest (read: riba').Findings – Islamic finance offers various ethical schemes and instruments that can be advanced and adapted for the purpose of microfinance. Comparatively, qardhul hasan, murabahah, and ijarah schemes are relatively easy to manage and will ensure the capital needs (qardhul hasan), equipments (murabahah) and leased equipments (ijarah) for potential micro‐entrepreneurs and the poor. Participatory schemes such as mudarabah and musharakah, on the other hand, have great potentials for microfinance purposes as these schemes can satisfy the risk sharing needs of the micro‐entrepreneurs.Research limitations/implications – The paper is only conceptual and does not aim t...read more
Citations
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Journal ArticleDOI
Equity financing and debt-based financing: Evidence from Islamic microfinance institutions in Indonesia
TL;DR: In this paper, the impact of Islamic micro-finance on rural households' welfare in Indonesia was investigated using a survey questionnaire and a double difference-in-difference approach.
Journal Article
CSR’s measuring corporate social responsibility practice in Islamic banking: A review
TL;DR: In this paper, the authors tried to compare between the current literatures reviews of CSR in Islamic banks and the current criticisms of social impacts on the society from Islamic banking operations.
Journal ArticleDOI
Do religiosity, gender and educational background influence zakat compliance? The case of Malaysia
TL;DR: In this paper, the influence of religiosity, gender and Islamic educational background of Muslims on zakat compliance was examined using a self-administered questionnaire that was distributed to working Muslims individuals in Klang Valley, Malaysia.
Journal ArticleDOI
The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System
TL;DR: In this article, the authors proposed Islamic finance as a potential tool to help affected economies safely pass through the economic crisis resulting from the pandemic and identified a four-stage COVID-19 model.
Journal ArticleDOI
An appraisal on the business success of entrepreneurial asnaf: An empirical study on the state zakat organization (the Selangor Zakat Board or Lembaga Zakat Selangor) in Malaysia
TL;DR: In this article, a survey was employed to obtain feedback from the recipients of zakat for small businesses under the scheme of entrepreneurial asnaf Zakat, and regression analysis showed that only capital and knowledge is significant in determining an asnaaf's entrepreneurial success, which leaves training as insignificant.
References
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Journal ArticleDOI
The microfinance promise
TL;DR: In this article, the authors highlight the diversity of innovative mechanisms beyond group-lending contracts, the measurement of financial sustainability, the estimation of economic and social impacts, the costs and benefits of subsidization, and the potential to reduce poverty through savings programs rather than just credit.
Journal ArticleDOI
Peer Monitoring and Credit Markets
TL;DR: In this paper, a simple model of peer monitoring in a competitive credit market is presented, where the transfer of risk from the bank to the cosigner leads to an improvement in borrowers' welfare.
Book
Islam and the economic challenge
TL;DR: Umer Chapra as mentioned in this paper combines Qur'anic wisdom and modern economics to provide a clear, integrated picture of what Islamic economics has to offer to realize the kind of well-being Islam envisages.
Posted Content
Financing microenterprises: an analytical study of islamic microfinance institutions
TL;DR: In this article, the theoretical basis, operational framework, and empirical support for the establishment of Islamic micro-finance institutions is provided. But, the case studies reveal that Islamic MFIs have not yet tapped some of the sources of funds, nor have they used the variety of financial instruments in their operations.
Book
Ethics and economics : an Islamic synthesis
TL;DR: In this paper, an Islamic synthesis of ethics and economics is presented, where the synthesis is based on the principles of the Quran and the Sun's Sun's Message of Tolerance and Acceptance.