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Journal articles on the topic 'Microfinance Institution'
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Herry, Ervicaninda, Pramudia Yuli Eka Permana, Wisnu Bayu Aji, and Ridan Muhtadi. "Total Quality Management Development and Sharia Governance Efforts in Sharia Micro Financial Institutions to Improve Market Share." IJIEEB : International Journal of Integrated Education, Engineering and Business 2, no. 1 (March 30, 2019): 27–35. http://dx.doi.org/10.29138/ijieeb.v2i1.809.
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An important pillar in the development of Islamic microfinance institutions is Total Quality Management and Sharia Governance. This pillar is the main differentiator between conventional Islamic finance institutions. Institutional efforts to provide satisfaction to customers. The concept of quality (quality) for service and non-service basically includes various things that are focused on the customer. Shari'ah supervision is needed to ensure the implementation of Shari'ah principles in the financial institution, which is played by the Shari'ah Supervisory Board. Implicitly this shows that the practice of shari'ah microfinance institutions has not been concerned with shari'ah principles and the quality of good governance, one of the causes of reputation and public trust in Islamic microfinance institutions will also have an impact on community loyalty use the services of a Shari'ah microfinance institution. Improved reputation and customer trust can be used as an indicator of the success of the development of Islamic microfinance institutions and at the same time predicting their future success in order to increase market share.
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Agustin, Atut Frida. "PERAN LEMBAGA KEUANGAN MIKRO (LKM) TERHADAP KINERJA EKONOMI KABUPATEN JOMBANG." Jurnal Ekonomi Pembangunan 9, no. 2 (December 1, 2011): 225. http://dx.doi.org/10.22219/jep.v9i2.3676.
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The objective of this study were: 1) To know the potential of Microfinance Institution (LKM) in Jombang Regency, 2) To know the role of Microfinance Institution (LKM) towards economic performance in Jombang Regency, 3)To know the needs of Microfinance Institution (LKM) Development in increasing LKM roles on the Jombang Regency economy. The results showed: First, the overall number of Microfinance Institutions (MFIs) in as many as 425 Jombang spread in 21 regencies. The regency which had LKM at most in Jombang regency for 154, the second was Ngusikan Regency. Second,The results of Econometric analysis were able to concluded that the amount of LKM, LKM capital, and the volume of bussiness impacted to the variable of economic growth in Jombang Regncy. Third, easy and soft loan had a degree of interest by 87% whereas direct aid only had a degree of interest of 13%. Meanwhile, institutions which was more effective to provide capital loans on LKM development was institutional in rural areas, for example, through another microfinance.
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Amin, Muhammad. "IMPLEMENTASI UNDANG-UNDANG NOMOR 1 TAHUN 2013 TERHADAP LEMBAGA KEUANGAN MIKRO SYARIAH YANG BERBADAN HUKUM KOPERASI." JURISDICTIE 10, no. 1 (July 11, 2019): 78. http://dx.doi.org/10.18860/j.v10i1.6482.
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<p><em>The existence of 2013 No. 1 Law concerning microfinance institution has force sharia microfinance institution whether it is cooperatively incorporated institutions or limited liability companies to adjust their institutional form, operational system, business fields, capital and every aspect related to the rules included in that law as the consequences. However, </em><em>the consequences of compulsory sharia microfinance institutions to obtain business licenses at financial service authorities have not run optimally. </em><em>The fact says there are only 17 sharia microfinance institution that have registered their institution with financial service authority</em><em>. The writer</em><em> was</em><em> interested in digging deeper into the compliance Anggrek Cooperative</em><em> which is a sharia microfinance institution</em><em> in implementing Law Number 1 of 2013 concerning Microfinance Institutions and the resulting impact on compliance</em><em> to it</em><em>.</em></p><p><em>Kesimpulannya bahwa kepatuhan hukum membuat Koperasi LKMS Anggrek mendaftar pada OJK dengan perubahan anggaran dasar yang bertujuan merubah dan menambah poin terkait kelembagaan, kegiatan usaha, cakupannya, serta pembinaan dan pengawasan. Sedangkan BTM Surya tidak demikian, melainkan memilih PERMEN No 16 /PER/M.KUKM/IX/2015 untuk memayungi operasionalnya, sesuai dengan arahan dinas koperasi. Hal ini dikarenakan, adanya polemik terkait UU LKM dengan UU Perkoperasian beserta aturan turunan. Kepatuhan Koperasi LKMS Anggrek tidak lepas dari komitmen normatif melalui legitimasi Ketika diukur dalam tingkat kepatuhan, maka kepatuhan Koperasi LKMS Anggrek sampai pada tahap identification, dan upaya mewujudkan program“Service City” (hifz an-nafs) dan mengandung maksud perkembangan ekonomi, (hifz al-mal). Sedangkan kesadaran hukum BTM Surya terhadap UU LKM, tidak serta merta membuatnya patuh, Namun langkah pengurus dalam mengelola harta merupakan upaya (hifz al-mal). Dan hubungan baik dengan dinas koperasi selaku lembaga pengawas merupakan interprestasi dari upaya (hifz an-nafs)</em></p><strong><em>Key Words:</em></strong><em>Microfinance Institution, Implementation, Cooperatively Incorporated Sharia Microfinance Institution</em>
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Njagi, Joram Nyaga, and Charity Njoka. "Microfinance Reforms and Financial Inclusion in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 3, no. 1 (August 28, 2021): 54–72. http://dx.doi.org/10.35942/ijcfa.v3i1.181.
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Statistics indicate that about 1.7 billion people can’t access a savings account and slightly above 200 million small and medium-sized enterprises are deprived access to satisfactory financial solution. Kenya views microfinances as a development instrument for poverty lessening and economic growth through ensuring financial inclusion. It is due to the acceptance of this vital role of Microfinance that Kenya has undertaken strategic microfinance reforms and regulations aimed at promoting financial inclusion through microfinance business. The research’s general objective is to examine the effect of microfinance reforms on financial inclusion. Specifically, to determine the influence of microfinance transformation from non-deposit taking into a deposit-taking microfinance institutions on financial inclusion, to examine the association between microfinance board characteristics and public trust, to investigate the effect of microfinance licensing requirements on financial inclusion and to examine the effect of microfinance prudential standards requirements on financial inclusion in Kenya. The research adopted Financial Intermediation Theory and Public Interest Theory of Regulation. This research utilized descriptive research design and the population targeted included all the thirteen Microfinance institutions, which were licensed by the central bank of Kenya as at 2018. The study used purposive sampling to select six microfinance banks. Both descriptive and inferential statistics were done by use of multiple linear regression analysis. The research results indicated that microfinance transformation (pvalue=0.001), board characteristics (pvalue=0.042), licensing requirements (pvalue=0.035) and prudential standards (pvalue=0.002) significantly influenced financial inclusion. Results from regression analysis indicated a strong relationship between microfinance transformation, board characteristics, licensing requirements and prudential standards and financial inclusion. The study concluded that financial inclusion in micro financial institutions increases when there is sound microfinance transformation, board characteristics, legal requirements, and prudential standards. From the findings, the study recommended that micro financial institutions should support institutions reform functions and processes. Further the study recommended that micro financial institutions should recruit adequate and proficient workers and offer satisfactory training as well as certification for professional appreciation on strategies for microfinance reform processes and their influence on the financial inclusion of the micro financial institution. The research recommends that board members should be reliable and open so as to substantially contribute to financial performance.
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Marakkath, Nadiya. "Innovative strategies devised by Indian microfinance institutions to achieve cost efficiency." International Journal of Finance & Banking Studies (2147-4486) 1, no. 1 (January 21, 2012): 15–20. http://dx.doi.org/10.20525/ijfbs.v1i1.132.
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This study is a discussion on the ‘Non-Governmental Organization-Microfinance Institution Partnership Model’ and ‘Securitization Model’ used by Indian microfinance institutions to achieve cost efficiency. These two models are effective strategies devised and used by efficient and sustainable Indian MFIs to reduce their operating cost and financing cost. Achieving such cost efficiency is crucial for microfinance institutions to attain operational self-sustainability without levying high interest rates. Using interview method the study elicits information on these innovative strategies and recommends them to be worthy of emulation for other microfinance institutions operating in the Indian microfinance industry.
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Hudon, Marek. "Une institution de microfinance éthique ?" Mondes en développement 152, no. 4 (2010): 83. http://dx.doi.org/10.3917/med.152.0083.
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Bennouna, Ghita, and Mohamed Tkiouat. "Stochastic model of microcredit interest rate in Morocco." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 268–73. http://dx.doi.org/10.22495/rgcv6i4c2art3.
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Access to microcredit can have a beneficial effect on the well-being of low-income households excluded from the traditional banking system. It allows this population to receive affordable financial services to help them to meet their needs and to improve their living conditions. However to provide access to credit, microfinance institutions should ensure not only their social mission but also commercial and financial mission to enable the institution to perpetuate and become self-sufficient. To this end, MFIs (microfinance institutions) must apply an interest rate that covers their costs and risk, while generating profits, Also microentrepreneurs need, to this end, to ensure the profitability of their activities. This paper presents the microfinance sector in Morocco. It focuses then on the interest rate applied by the Moroccan microfinance institutions; it provides also a comparative study between Morocco and other comparable countries in terms of interest rates charged to borrowers. Finally, this article presents a stochastic model of the interest rate in microcredit built in random loan repayment periods and on a real example of the program of loans of microfinance institution in Morocco.
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Mia, Md Aslam, and ImeneTabet. "Does Microfinance Institution Has Institutional Properties to Generate Savings?" East Asian Journal of Business Management 6, no. 3 (July 30, 2016): 11–14. http://dx.doi.org/10.13106/eajbm.2016.vol6.no3.11.
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Karugu, Kahihu Peter, Wachira D. Muturi, and Stephen M. A. Muathe. "Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya." International Journal of Economics and Finance 12, no. 11 (October 28, 2020): 118. http://dx.doi.org/10.5539/ijef.v12n11p118.
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The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.
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Ahlin, Christian, Jocelyn Lin, and Michael Maio. "Where does microfinance flourish? Microfinance institution performance in macroeconomic context." Journal of Development Economics 95, no. 2 (July 2011): 105–20. http://dx.doi.org/10.1016/j.jdeveco.2010.04.004.
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Rusydiana, Aam S. "Sudah Sampai Manakah Riset Keuangan Mikro Syariah Kita?" JURNAL EKONOMI DAN PERBANKAN SYARIAH 6, no. 1 (August 26, 2019): 5–26. http://dx.doi.org/10.46899/jeps.v6i1.85.
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This study tries to review the research around Islamic microfinance institution. It uses descriptive statistical analysis based on selected 100 journal publications or paper related to Islamic microfinance institution, both national and international journal. The entire sample journal publications have published for ten years from 2007 to 2016. The Results show that Islamic microfinance institute research is still dominated by the discussion about Islamic microfinance institution (54%), followed by eradication of poverty (25%), then financing the poor societies (11%) and the last is about management of Islamic microfinance institution (10%). In addition, Indonesia, Malaysia and Pakistan are being the highest of Islamic microfinance study area, while the majority of publications area are from Indonesia, United States and United Kingdom. Furthermore, the comparison of quantitative research and mixed methods are still less than the qualitative approach.
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Rozzani, Nabilah, Intan Salwani Mohamed, and Sharifah Norzehan Syed Yusuf. "Technology for Islamic microfinance’s disbursement and repayment system." International Journal of Social Economics 43, no. 12 (December 5, 2016): 1271–83. http://dx.doi.org/10.1108/ijse-05-2015-0115.
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Purpose The purpose of this paper is to explore the implementation of a mobile network system for an Islamic microfinance institution, made in collaboration with a commercial bank in Malaysia. It also intends to highlight any emerging issues pertaining to the implementation of technology into the disbursement and repayment system of an Islamic microfinance institution from their clients’ perspectives. As Islamic microfinance industry is still growing in Malaysia, findings gathered throughout the course of study are also intended to boost further knowledge relating to this area. Design/methodology/approach By using a case study method, interview sessions were conducted separately with clients of the Islamic microfinance institution. The purpose of interview sessions is to identify the benefits and problem that surrounds the usage of mobile banking into the repayment system for Islamic microfinance products. Data triangulation with various public documents was conducted to enhance the credibility and reliability of data, also to support the claims that were made by the respondents. Findings It was found that clients are quite satisfied with the disbursement process through a mobile solution. However, the same cannot be said with the repayment process. The difficulties in using the mobile solution pose a major threat to its success. As most clients are not born to be technological savvy, the lack of easiness in methods for the usage of a mobile solution for their transactions pushes them away from further exploring the benefits that can be brought in by the function. Other risks which were highlighted include concerns towards breach of trust and risks of robbery. Clients of the case study, on the other hand, are concerned that the transfer of cash between their meeting venues to the bank would expose them to the public who might try to take advantage from the situation. Research limitations/implications As the current study had only focusses on mobile banking aspect of the repayment system for one Islamic microfinance institution, a multiple case study could be adapted to investigate various banking channels being implemented by different Islamic microfinance institutions in Malaysia and their current success. Practical implications By highlighting several issues through this study, it is hoped that this Islamic microfinance institution would consider applying other means of payment that are available in the market that is not only cost-efficient, but also beneficial for clients of the institution. Originality/value This study highlights the setbacks in the usage of technology by clients of Islamic microfinance institution in Malaysia. Although many approved to the diffusion of innovation in Malaysian banking sector, the same has yet to be achieved in the Islamic microfinance industry, which clients are mostly technology illiterate.
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Noer, Zakiah. "AKIBAT HUKUM PENDIRIAN LEMBAGA KEUANGAN MIKRO OLEH BADAN HUKUM KOPERASI." JURNAL MEDIA HUKUM DAN PERADILAN 4, no. 1 (May 30, 2018): 35–50. http://dx.doi.org/10.29062/jmhp.v4i1.3.
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This research is underlined by the existence of cooperative business activities which collect and distribute funds over its members, and also to its non-members. In order to avoid the violation of the provisions in Act No. 25 Year 1992 about Cooperatives, cooperative has established a microfinance institution (MFI) which called as Cooperative MFI. The establishment of microfinance institutions causes the legal consequences on several aspects because of the different regulations between Cooperative and MFI according Act No. 25 Year 1992 about Cooperatives and Act No.1 Year 2013 about Microfinance Institutions
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FIRDAUS, ARI RAHMAD HAKIM BUDIAWAN, YUDHI SETIAWAN, and I. GUSTI AGUNG WISUDAWAN. "LEGALITAS BADAN USAHA MANDIRI TERPADU (BMT) SEBAGAl LEMBAGA KEUANGAN MIKRO BERDASARKAN HUKUM DI INDONESIA." GANEC SWARA 15, no. 1 (March 6, 2021): 831. http://dx.doi.org/10.35327/gara.v15i1.181.
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The existence of Baitul Maal wa Tamwil (BMT) as a microfinance institution in Indonesia has a very strategic position and role, this is not an exaggeration because in reality as a microfinance institution, BMT supports the community's economy, especially small or micro-entrepreneurs and the community. low-income earners in general who mostly live in rural areas. The existence of BMTs that is integrated with the lives of low-income people is one of the distinct advantages of this financing institution so that it makes it easier for the poor to access funding. Thus it can be said that BMT has a very important position and role because in its development it continues to increase significantly as a Micro Financial Institution, both in terms of financial performance and the number of customers that are not accessible to existing banking institutions. However, with this important existence and role, every BMT should pay attention to both institutional and operational legality aspects that must exist in him, so that the legal existence of all service products offered and guaranteed application of sharia principles in their activities
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Azim, Mohammad I., Kuang Sheng, and Meropy Barut. "Combating corruption in a microfinance institution." Managerial Auditing Journal 32, no. 4/5 (April 4, 2017): 445–62. http://dx.doi.org/10.1108/maj-03-2016-1342.
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Purpose Combatting corruption is an important social and commercial issue in most human societies. Many researchers have revealed how an effective anti-corruption practice can possibly minimise corruption in an organisation. However, studies focusing on organisations which are relatively successful in managing corruption at the employee level are relatively rare. On this note, this study aims to focus on Grameen Bank in particular, a Nobel-Prize-winning microfinance institute that was able to minimise its level of corruption among its employees in a country where corruption is the norm. Design/methodology/approach This paper uses standard economic theory to explain the perceptions and behaviours of the employees of Grameen Bank who live and work in a highly corrupt socio-cultural environment. This paper used questionnaires to ascertain the perceptions of Grameen Bank employees’ notions regarding corruption-combating behaviours. Interviews were also conducted among Grameen’s board members, managers and officers to further explore the nature and effectiveness of this organisation’s anti-corruption mechanisms. Findings Corruption can never be entirely eradicated; however, it can be diminished and opportunities for corruption can be minimised. This paper found, through an analysis of employees’ perceptions relating to governance and corruption in the Grameen Bank, that corruption exists, but there are systems in place to prevent it and to assist with staff morality. This research also uncovered a number of best practices in Grameen Bank’s governance to minimise corrupt behaviours, which include, but are not limited to, strong monitoring, decentralisation of authority, review of decision-making process, high internal audit intensity, impersonal punishment, anti-corruption cultures and transparency. Originality/value This study suggests that it is possible for organisations to resist corruption, especially microfinance institutions, even when they operate in a highly corrupt socio-cultural environment.
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Hope Quao, Kwami, Lawrence M. Lekhanya, and Nirmala Dorasamy. "An investigation of the financial monitoring policies for microfinance institutions in Ghana." Investment Management and Financial Innovations 14, no. 4 (December 20, 2017): 90–104. http://dx.doi.org/10.21511/imfi.14(4).2017.09.
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The need to regulate microfinance institutions (MFIs) was advocated and researched yet lacks purposeful in-depth exploring studies of the formulation process of financial monitoring policies, their implementation and accompanying challenges. Consequently, this study contributes by reviewing the specific financial policies for microfinance in Ghana and assesses factors mitigating effective implementation of such policies. It also introduces implementation theory into the MF research arena, thus shifting MF research focus. The study revealed that policies formulated for MFIs in Ghana and elsewhere are skewed and policy implementation, monitoring and supervision found to be less effective. The results further identified inadequate support structures and large unlicensed profit-oriented informal microfinance operations in Ghana as major obstacles to efficient implementation of microfinance policies. This paper therefore recommends the creation of a semi-autonomous institution, the National Microfinance Oversight Authority, to license, regulate and supervise the informal microfinance institutions in Ghana.
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Muriithi Njue, Alex, Samuel Nduati Kariuki, and Duncan Mugambi Njeru. "Liquidity Management and Financial Performance of Microfinance Institutions in Kenya." Journal of Social Sciences Research, no. 611 (November 19, 2020): 943–53. http://dx.doi.org/10.32861/jssr.611.943.953.
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Sound liquidity management is integral for any financial institution’s stability and profitability, since deteriorating liquidity management is the most frequent cause of poor financial performance. As with any financial institution, the biggest risk in microfinance sector is lending money and not getting it back leading to liquidity problems as most of them have no access to lender of the last resort which is the Central Bank of Kenya. The study sought to investigate the effect of liquidity management on financial performance of microfinance institutions in Kenya. The target population of the study was all the twenty-six microfinance in Kenya that are members of Association of Microfinance Institutions and were licensed by the Central Bank of Kenya as at 2017. A census of all the twenty-six 26 Microfinance Institutions in Kenya was conducted for five years from 2012 to 2016. Secondary data on the study variables was gathered from the audited financial statements of the Microfinance Institutions. The study employed random effect model on a 5-year panel data from 2012 to 2016 on all the 26 Microfinance Institutions in Kenya. The study found a positive relationship between capital adequacy and financial performance and a negative relationship between asset quality, maturity gap and financial performance. The study would help Microfinance Institutions as they would use the research findings to develop liquidity management strategies to enable Microfinance Institutions improve on their financial performance.
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Barguellil, Achouak, and Leila Bettayeb. "The Impact of Microfinance on Economic Development: The Case of Tunisia." International Journal of Economics and Finance 12, no. 4 (March 10, 2020): 43. http://dx.doi.org/10.5539/ijef.v12n4p43.
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This paper aims to study the impact of microfinance on economic development. We used data from the MIX Market (Microfinance Information Exchange), collected from “Enda Tamweel” microfinance institution over the period 1995-2017. The VAR estimation shows that microfinance has a negative and significant impact on the ratio of poverty per capita and the GINI index. Granger's causality test confirms that microfinance contributes more effectively to economic development through its social performance. On the other hand, financial performance gives priority to activities that contribute to the sustainable development of the microfinance institution.
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Appiah, Ebenezer, Deborah Darko Ampeah, and Wonder Agbenyo. "Investigating Factors that Influence SME’s Choice of Services Rendered by Microfinance Institutions: Evidence from La-Nkwantanang Municipality in Ghana." International Journal of Economics and Finance 11, no. 2 (January 10, 2019): 98. http://dx.doi.org/10.5539/ijef.v11n2p98.
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There is a recent wave of collapsing Microfinance Institution’s in Ghana which causes SMEs to think critically about the MFI’s they choose to bank with. This has given birth to the investigation of factors that influence SMEs choice of services rendered by microfinance institutions in Ghana. The study adopted the descriptive research design. Stratified random sampling technique was used to select the SMEs for this study and data was collected from a sample of 384 using questionnaires and 279 were returned. The study revealed that electronic banking, convenience and security influences, reputation and legal regulation, interest rate and service provided by the microfinance institution are essential factors that influence the choice of SMEs. The study concludes that the reputation of a business is also essential to its survival, the trust and confidence of the SME can have a direct and profound effect on microfinance institutions. The study recommended that, microfinance institutions should make it a must to obtain all necessary banking licenses from Bank of Ghana before they commence business in order to avoid the embodiment of fear of collapse into potential SME’s who might be willing to transact business with them and also educate those who render services on behalf of the bank. Customer service is very important and should be considered as the first priority of the bank.
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Amran, Afifa Malina, Intan Salwani Mohamed, Sharifah Norzehan Syed Yusuf, and Nabilah Rozzani. "Financial and Social Performances of Islamic Microfinance Service Provider With Mobile Banking." International Journal of Financial Research 10, no. 5 (June 10, 2019): 181. http://dx.doi.org/10.5430/ijfr.v10n5p181.
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In Malaysia, Islamic microfinance institutions (IMFIs) are part of Islamic financial institutions and have been established to provide Islamic microfinance products (interest free loans). Their aim is to promote trade activities among Islamic microfinance recipients in improving their standard of living. Information and data gathered can be used as evidence to prove that Islamic microfinance has traits that provide a support system for the poorest of the poor. This study hence intends to investigate the application of technology by Islamic microfinance institutions within a context of its accounting information system through the usage of mobile banking. This study is conducted using qualitative approaches via interviews to obtain in depth understanding of mobile banking usage at an Islamic microfinance institution. Financial data, as well as data on the total number of loan recipients (sahabats) is referred by the study in investigating another aspect of social performance in terms of vicegerency and accountability of the IMFI. Extensive application of vicegerency concept in explaining the findings is parallel to Shari'ah Foundation for Accountants in outlining characteristics of Muslim accountants in preventing them from doing prohibited actions.
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Okello Candiya Bongomin, George, and John C. Munene. "Examining the role of institutional framework in promoting financial literacy by microfinance deposit-taking institutions in developing economies." Journal of Financial Regulation and Compliance 28, no. 1 (November 18, 2019): 16–38. http://dx.doi.org/10.1108/jfrc-12-2018-0158.
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Purpose This paper aims to examine the role of institutional framework of regulative, normative, and cultural-cognitive in promoting financial literacy by microfinance deposit-taking institutions in developing economies with a specific focus on rural Uganda. Design/methodology/approach Data were collected from a total sample of 400 respondents who are clients of promotion of rural initiatives development enterprises microfinance deposit-taking institution using a questionnaire and analysis of moment structures (AMOS) was adopted to analyze the data to examine the role of institutional framework of regulative, normative, and cultural-cognitive in promoting financial literacy by microfinance deposit-taking institutions in developing economies with a specific focus on rural Uganda. Findings The results indicated that institutional framework of regulative, normative, and cultural-cognitive significantly and positively promotes financial literacy by microfinance deposit-taking institutions in developing economies, especially in rural Uganda. The existence of institutional framework of regulative (codified rules and laws), normative (shared beliefs/values and norms), and cultural-cognitive (shared conception and interpretation) promotes financial literacy by microfinance deposit-taking institutions in rural Uganda. The structural equation model constructed by use of AMOS revealed that the institutional framework of regulative, normative, and cultural-cognitive explains 27 per cent of the variation on the role of microfinance deposit-taking institutions in promoting financial literacy in rural Uganda. Research limitations/implications This study was purely cross-sectional with data collected at a specific point in time. Therefore, future studies through longitudinal research design can be adopted to test for the hypotheses derived under this study. In addition, only quantitative data collected by use of a semi-structured questionnaire was used in this study. Further studies may consider the use of interviews to get in-depth responses from the respondents. Practical implications Advocates of financial literacy programs in developing economies should consider the existence of institutional framework of regulative, normative, and cultural-cognitive, which helps in promoting financial literacy by microfinance deposit-taking institutions. Indeed, the existence of state legislation to teach people about how to manage their money can promote financial literacy. Besides, normative behavior among individuals within a social setting can lead to increased likelihood that they will engage and participate in a particular financial literacy drive. Correspondingly, cognition, especially fluid intelligence that changes as people age may also help individuals to invoke several dimensions of cognitive skills to make informed financial decisions. Originality/value The current study adds to the existing body of knowledge by examining the role of institutional framework of regulative, normative, and cultural-cognitive in promoting financial literacy by microfinance deposit-taking institutions in developing economies. There is deficiency in the link between the institutional framework under the theory of institutions and financial literacy, especially in developing economies where there is great need for financial literacy among the poor.
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ANNIM, SAMUEL KOBINA. "TARGETING THE POOR VERSUS FINANCIAL SUSTAINABILITY AND EXTERNAL FUNDING: EVIDENCE OF MICROFINANCE INSTITUTIONS IN GHANA." Journal of Developmental Entrepreneurship 17, no. 03 (August 23, 2012): 1250016. http://dx.doi.org/10.1142/s1084946712500161.
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This study tests the hypotheses that: (i) formal microfinance institutions (MFIs) using their own mobilized financial resources (based on owners' equity, commercial lending or deposits) for on-lending reach non-poor clients and (ii) concentrating on the achievement of financial sustainability causes an institution to target non-poor clients. Using data on 2,691 MFI clients and non-clients from Ghana, we revisit the microfinance argument of serving poorer clients and sustainability, and in addition examine the effect of the source of funds and type of institution on the financial and social objectives of MFIs. Following the correction of endogeneity, our regression analysis shows that unlike financial self-sufficiency, MFIs that are only operationally self-sufficient reach poorer clients, and also, formal institutions dispensing their own funds target non-poor clients. The latter finding suggests the importance of complementary development strategies and a deliberate harmonization of microfinance interventions, irrespective of the source of funds.
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Duong Ha, Van. "Measuring Customer Satisfaction Towards Microfinance Services Provided in Vietnam." Journal of Social Sciences Research, no. 63 (March 15, 2020): 325–34. http://dx.doi.org/10.32861/jssr.63.325.334.
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Customer satisfaction towards microfinance services is a measure of how microfinance services supplied by a microfinance institution meet or surpass customer expectation. The use of microfinance services plays a very important role in the socioeconomic development and contributes significantly to the development of microfinance sector in one nation. This study aims at measuring the customer satisfaction towards microfinance services they are using. This study uses the five broad dimension theory of service quality, data will be collected from the way of survey from microfinance institutions (MFIs) customers and later on will be analyzed by statistical technique and tools like descriptive statistics, and correlation method. The descriptive statistics are conducted to show out some specific areas in which MFIs need to pay more attention. The correlation analysis is to find out the relationship between each independent variable and the dependent variable. Finally, the conclusion and recommendation will summarize the key findings of the research and give suggestions to MFIs in Vietnam.
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Handayani, Wuri, Roszaini Haniffa, and Mohammad Hudaib. "A Bourdieusian perspective in exploring the emergence and evolution of the field of Islamic microfinance in Indonesia." Journal of Islamic Accounting and Business Research 9, no. 4 (July 9, 2018): 482–97. http://dx.doi.org/10.1108/jiabr-10-2017-0142.
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Purpose Microfinance institutions (MFIs), including Islamic microfinance institutions (IMFIs) in Muslim countries, have spread across the globe and transformed into a new industry. However, how IMFIs in Indonesia evolved to become an important sector serving society has not been rigorously explored. Therefore, the purpose of this paper is to address the lacuna on the emergence of an industry by examining the development of Islamic microfinance sector in Indonesia. Design/methodology/approach The paper adopts the historical research method to narrate the evolution of this specific sector based on the data collected through oral history and published academic research documents during various periods of Indonesia’s economic and political milieu. Findings This paper demonstrates that the emergence and development of IMFIs in Indonesia has been shaped within the wider process of socio-political changes, particularly, the role of Islamic movement and politics in Indonesia. Originality/value Most studies investigating the emergence and transformation of institution or industry adopt the static approach, which has been criticised as it fails to consider the process of emergence, growth path and the survival of organisations. Hence, this paper contributes to the literature by analysing the institutional evolution by locating the institution inside its wider environmental context by using Bourdieu’s concept of field to narrate the historical development of IMFIs from its emergence and evolution to become a significant new industry in the country.
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Antoh, Ernestina Fredua, and Albert A. Arhin. "Advancing Sustainable Development Goals (SDGs): An Analysis of How Non- Financial Services of Microfinance Insitutions Facilitate Human Capital Development of Clients in Ghana." Journal of Sustainable Development 11, no. 4 (July 29, 2018): 257. http://dx.doi.org/10.5539/jsd.v11n4p257.
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In 2015, the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development, together with seventeen goals that are collectively called the Sustainable Development Goals (SDGs). This study examined the effects of non-financial microfinance services on human capital development of clients and discusses its implications on the achievement of the Sustainable Development Goals. The case is drawn from Sinapi Aba Trust (SAT), which is a microfinance institution of Ghana. Primary data were collected from 361 clients in seven districts of the Ashanti Region, Ghana. The results of the ordinary least square (OLS) regression showed that non-financial services offered by SAT had positive significance on human capital development of the clients. This finding shows how additional services from microfinance institution could help clients to maximise the value of loans offered to support income-generating economic activities. For clients, the study also draws attention to the need for them to take non-financial services offered by microfinance institutions seriously to improve on their own human capital development in the context of the SDGs.
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Aziz, Atif, and B. D. Pandey. "A Case Study of Safa Baitul Maal- An Islamic Micro Finance Institution in Hyderabad India." Journal of Management and Strategy 11, no. 4 (November 16, 2020): 41. http://dx.doi.org/10.5430/jms.v11n4p41.
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Islamic Microfinance refers to interest free microfinance in which no interest is charged from the poorest members of the society who are (areas in which poor people are living) marked negative by commercial banks i.e. the people are not given any loans. The main aim of any Islamic microfinance institution is to help the financially backward people to set up their small businesses without adding any further financial burden on them. The other objective of Islamic Microfinance is poverty alleviation and brings the poorest of the poor in the main stream. Unlike commercial banks and conventional microfinance, the objective of Islamic Microfinance is not to make profit but to earn reward from Allah (the Creator of Universe) both in this world and Hereafter. Islamic Microfinance or Interest free microfinance is most important tool to protect poor and poorer from the clutches of Sahukars (money vendors) who give meagre amount of Rs 800-1000 to small vendors in the morning and ask for principal and interest in the evening. In this paper, the authors have taken up the study of Safa Baitul Maal (SBM) interest free microfinance based in Hyderabad India. The selected institution has also been evaluated on various aspects such as its modus operandi, current status, outreach. The institution is fairly new which started its microfinance activities in 2014 in Kishan bagh Hyderabad Telangana India. The findings are very impressive, the shariah compliance is strictly followed. The loan amount distribution which was Rs 0.1 million in 2014 has now increased to 1 million in 2019. Initially only 20 persons were given interest free loan now this number is increased to 1500 persons in 2019 and 1800 in 2020.
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Arsyad, Lincolin. "AN ASSESSMENT OF MICROFINANCE INSTITUTION PERFORMANCE: The Importance of Institutional Environment." Gadjah Mada International Journal of Business 7, no. 3 (September 12, 2005): 391. http://dx.doi.org/10.22146/gamaijb.5579.
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This paper aims to assess the performance of Village Credit Institutions (Lembaga Perkreditan Desa or LPD) in Gianyar district, Bali province, Indonesia and its affecting factors –particularly its institutional environment. The performance indicators assessed include financial indicators (such as portfolio quality, leverage, capital adequacy ratio, productivity, efficiency, profitability, and financial viability) and outreach of the LPDs. Institutions here refer to the rules or procedures that shape how agents (people) interact and the organizations that implement the rules and codes of conduct to achieve desired outcomes. Based on data from financial reports of 174 LPDs of Gianyar district in 1999 and 2001, interviews with some stakeholders (clients, chairmen, and member of commissioner board) of the LPDs, and using descriptive analysis approach, this paper reveals that the LPDs have achieved a good performance indicators and been sustainable, and the good performance and sustainability have been very much influenced by institutional environment which includes both formal and informal institutions.
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Nisa, Chaerani. "COMPETITION IN MICROFINANCE INSTITUTION: A LITERATURE REVIEW." Dinasti International Journal of Education Management And Social Science 1, no. 3 (February 19, 2020): 341–48. http://dx.doi.org/10.31933/dijemss.v1i3.165.
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This research aims to investigate competition in Microfinance Institution (MFI). MFI is an institution that serves unbankable people through increasing access to finance. Though it faces a challenging situation, many organizations interested in investing in MFI, this condition builds a competitive situation among MFI. Meanwhile, MFI offers diversified products to increase their revenue because they are facing a more intense situation. This research uses a literature survey to find out a journey regarding competition in MFI.
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Wira, Ahmad, Hulwati Hulwati, Huriyatul Akmal, Riandy Mardhika Adif, and Jufriadif Na`am. "Islamic Economic Orientation Model for Microfinance Institution." Journal of Social Sciences Research, no. 53 (March 10, 2019): 676–82. http://dx.doi.org/10.32861/jssr.53.676.682.
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This study formulated a model of Islamic economic orientation towards microfinance institutions (MFIs) in Solok Indonesia. The approach method used is Participatory Action Research (PAR) on Islamic economics in social change. This study produces three models of Islamic economic orientation, namely social, profit and social-profit. Thus, this research helps the community in implementing a more reliable Islamic economy.
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Awaworyi Churchill, Sefa, Jeffrey Korankye Danso, and Elikem Nyatefe. "Microfinance Institution Performance: Does the Macroeconomy Matter?" Economic Papers: A journal of applied economics and policy 37, no. 4 (October 26, 2018): 429–42. http://dx.doi.org/10.1111/1759-3441.12233.
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Fianto, Bayu Arie. "Islamic microfinance institution: Survey data from Indonesia." Data in Brief 28 (February 2020): 104911. http://dx.doi.org/10.1016/j.dib.2019.104911.
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Romadoni, Aidi Faiz, and Sri Herianingrum. "FUNGSI LEMBAGA KEUANGAN MIKRO SYARIAH DALAM MENDORONG KEUANGAN INKLUSIF DAN SEKTOR RIIL (BMT NU JAWA TIMUR DI SUMENEP)." Jurnal Ekonomi Syariah Teori dan Terapan 7, no. 5 (July 3, 2020): 814. http://dx.doi.org/10.20473/vol7iss20205pp814-825.
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Poverty and inequality are classic problems. Financial institutions, in general, have not been able to alleviate it. The hope is for microfinance institutions. Included in this is the BMT NU Jawa Timur. For this reason, we have revealed the role of the Islamic microfinance institution in encouraging financial inclusiveness and the role of the Islamic microfinance institution in advancing the real sector. This research approach is qualitative with a case study strategy by using interviews and direct observation. The interviewees were the directors of BMT and customers. With a data analysis model from Hiles and Huberman, wherein analyzing the data, there are three steps taken. Namely, data reduction, data presentation and verification. The results of the study show that East Java BMT uses the term Lasisma which is commensurate with inclusive finance. The system is the same. Lasisma reaches out to the lowest levels of society. The BMT goes to community groups that need capital in developing unsecured businesses.Keywords: BMT NU Jawa Timur, Inclusive Finance, Lasisma, Real Sector
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Agbemava, Edinam, Israel Kofi Nyarko, Thomas Clarkson Adade, and Albert K. Bediako. "Logistic Regression Analysis Of Predictors Of Loan Defaults By Customers Of Non-Traditional Banks In Ghana." European Scientific Journal, ESJ 12, no. 1 (January 29, 2016): 175. http://dx.doi.org/10.19044/esj.2016.v12n1p175.
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The objective of this research is to identify the risk factors that influence loan defaults by customers in the microfinance sector and to develop a model that links these factors to credit default by customers in the sector. Data from a microfinance institution based in Accra Ghana was used. A binomial logistic regression analysis was fitted to a data of 548 customers who were granted credit from January 2013 to December 2014. The results of the study revealed that six factors: X3 (Marital Status); X7 (Dependents); X11 (Type of Collateral or Security); X13(Assessment); X15 (Duration); and X16 (Loan Type) were statistically significant in the prediction of loan default payment with a predicted default rate of 86.67%. It is therefore suggested that microfinance institutions adopt among others, the default risk model to ascertain the level of risk since it’s relatively efficient and cost effective. There should also be up to date training for loan officers of microfinance institutions in order to improve on their assessment skills and methodology. The supervising body of microfinance institutions (Bank of Ghana) should also consider enacting laws that will ensure that all such institutions in Ghana are roped into centralized database to check multiple borrowing and also serve as an internal control measure for the sustainability of these institutions.
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Srnec, K., J. Svitaková, M. Výborná, and P. Burian. "Microfinance as a suitable instrument of European and Czech development cooperation." Agricultural Economics (Zemědělská ekonomika) 57, No. 11 (December 2, 2011): 529–33. http://dx.doi.org/10.17221/52/2011-agricecon.
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European countries use microfinance as an instrument of development cooperation in three separate forms, which differ in the financial flow. In the first type, the government transfers grant money to their non-government organizations (NGOs), which then distribute the funds directly to the local microfinance institutions (MFIs) (eg. Finland). In the second form, the funds are sent through to the branch-offices of the NGOs located in the developed country to developing countries (eg. Norway, Sweden). The third type allows for a direct relationship between a donor country development co-operation agency and a local microfinance institution in a developing country without intermediation of the developed country NGOs (eg. Great Britain, Germany). The Czech Republic currently does not support microfinance by the direct/indirect transfer of funds, but it promotes the awareness of the Czech NGOs and the public of microfinance as a tool for the economic development.
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Febianto, Irawan, Fuadah Binti Johari, and Zurina Binti Kefeli @Zulkefli. "The Role of Islamic Microfinance For Poverty Alleviation in Bandung, Indonesia." Ihtifaz: Journal of Islamic Economics, Finance, and Banking 2, no. 1 (June 24, 2019): 55. http://dx.doi.org/10.12928/ijiefb.v2i1.736.
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The emergence of Islamic micro financial institution becomes the alternative solution for the micro-entrepreneurs who need working capital assistance. However, the impact of Islamic microfinance institution in reducing poverty level is somewhat still debatable. In Indonesia, Islamic microfinance established through the presence of Baitul Mal wa Tamwil (BMT), the most popular type of Islamic microfinance institutions. BMT providing financing for the micro-entrepreneurs, as their potential clients, that operates their activities mostly at the traditional markets. The purpose of this study is to measure the impact of BMT for poverty alleviation in Bandung as the capital city of West Java as the biggest population province in Indonesia, not only based on material level but also on spiritual level. This study is looking at income variables of micro-entrepreneur’s household, as well as the spiritual level indicator of micro-entrepreneur before and after they received financing from BMT. The primary data obtained through in-depth questionnaires in Bandung, Indonesia.
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Anglin, Aaron H., Jeremy C. Short, David J. Ketchen, Thomas H. Allison, and Aaron F. McKenny. "Third-Party Signals in Crowdfunded Microfinance: The Role of Microfinance Institutions." Entrepreneurship Theory and Practice 44, no. 4 (April 12, 2019): 623–44. http://dx.doi.org/10.1177/1042258719839709.
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Crowdfunded microfinance research has routinely examined how campaign characteristics drive funding to crowdfunding campaigns but has neglected to examine the critical role of the microfinance institution (MFI). We leverage signaling theory to contend that entrepreneurs’ MFI affiliation is a salient third-party signal that shapes the performance of their crowdfunding campaign and examine how the financial and social performance of MFIs drive campaign funding. Our examination of 220,649 loans paired 173 MFIs supports our arguments. We provide insight into the importance of third-party signals in crowdfunding and into how investors seek to balance social motives with financial concerns in crowdfunded microfinance.
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Atta Peprah, James. "Disruptions and the protracted effects of the COVID-19 lockdown in the non-bank financial institution sector in Ghana." Enterprise Development and Microfinance 32, no. 1 (June 1, 2021): 78–92. http://dx.doi.org/10.3362/1755-1986.21-00003.
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This paper assesses disruptions in the non-bank financial institution (NBFI) sector and the protracted effects of COVID-19 and the lockdown on the NBFI sector. The paper focuses on microfinance institutions in Ghana using rapid response survey data obtained from the Ghana Microfinance Institutions Network between January 2020 and April 2020. Poor corporate governance, improper documentation of transactions, and impaired loan portfolio among others were antecedents to the disruptions. Regarding the lockdown effects, we found that savings value contracted and the possibility of a further deteriorating portfolio is anticipated thus reducing interest income. The use of digital channels of delivering savings and loan products increased while the physical delivery channel decreased. The regulator needs to have a second look at microfinance regulation in Ghana. Policy should focus on expanding and upscaling the use of digital and remote banking means in reaching out to clients.
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Krisna Adwitya Sanjaya, Putu, I. Nyoman Suta Widnyana, and I. Putu Nuratama. "PEMBERDAYAAN PRAJURU LEMBAGA KEUANGAN MIKRO ADAT MELALUI PENERAPAN TEKNOLOGI INFORMASI DI DESA KESIUT KECAMATAN KERAMBITAN KABUPATEN TABANAN." JURNAL SEWAKA BHAKTI 3, no. 1 (December 14, 2019): 25–39. http://dx.doi.org/10.32795/jsb.v3i1.517.
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Indonesia is preparing itself in the era of the industrial revolution 4.0. For this reason, businesses are expected to be able to maximize the use of information technology to the fullest, one of which is by preparing financial statements. But now there are not many microfinance institutions that use information technology to carry out the recording of their financial statements. This also happened in Kesiut village, located in Kerambitan sub-district, Tabanan Regency. The Indigenous Community microfinance institution still records finances manually and some even inconsistencies in carrying out the registration process. Of course this if not followed up immediately will pose a risk of future losses. The obstacle faced is the lack of professional quality human resources. Problem solving solutions are implemented by conducting socialization, training and assistance in preparing financial statements. The implementation method is carried out in several stages, beginning with providing an understanding of the importance of the use of information technology, followed by giving an overview of the general picture of how the industrial revolution occurred which could lead to diseruption. The next step is to carry out training in preparing financial statements based on information technology software. The final stage is assisted to help solve the problems faced in relation to the preparation of financial statements. Through the community partnership program which is manifested through the stages of outreach, training and mentoring, the Indigenous community microfinance institution in running its business is able to independently prepare financial reports and conduct evaluations of its business activities. By carrying out this activity it is also hoped that in the long run the Indigenous community microfinance institutions in the Kesiut village will further develop and of course with the development of indigenous community microfinance institutions, the economy in the area will also be stretched so that there will be an acceleration of the welfare of the village community.
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Sanjaya, Putu Krisna Adwitya, and Made Heny Urmila Dewi. "Lembaga Keuangan Mikro Adat Sebagai Penggerak Perekonomian Desa Lambing." WIDYA MANAJEMEN 2, no. 2 (August 1, 2020): 55–68. http://dx.doi.org/10.32795/widyamanajemen.v2i2.878.
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This study aims to analyze the performance of Lambing Badung Regency customary microfinance institutions which are assessed from four perspectives, namely: (1) financial perspective, (2) customer perspective, (3) internal business process perspective, and (4) learning and growth perspective. This study is a type of quantitative descriptive study that explains the performance of customary microfinance institutions in 2017 - 2019. Data are collected using questionnaires, documentation, and interviews which are then analyzed using the balanced scorecard approach. This study found the fact that the performance of Lambing indigenous microfinance institutions based on four perspectives: (1) the overall finance is in the healthy category, (2) the overall customer is in a good category, (3) the internal business process is classified as efficient, and (4) learning and growth as a whole are in a good category. By having a good performance, this institution is expected to be more developed and of course, with the development of customary microfinance institutions, the economy in the area will also be increasingly stretched which can become a pillar driving the economy so that there is an acceleration of the welfare of rural communities.
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Thalib, Prawitra, Sri Hajati, Faizal Kurniawan, and Komari Aldiansyah. "THE URGENCE REGULATION OF BUSINESS ACTIVITIES ON ISLAMIC MICROFINANCE INSTITUTION ACCORDING LAW NO. 1 YEAR 2013 OF MICROFINANCE INSTITUTIONS." Arena Hukum 14, no. 2 (August 31, 2021): 207–21. http://dx.doi.org/10.21776/ub.arenahukum.2021.01402.1.
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Microfinance Institutions (hereinafter referred to as MFIs) are financial institutions that function as intermediary institutions that aim not only to seek profit, but have another goal, namely social goals whose activities are more community development. MFIs in conducting business activities can be carried out conventionally or based on Sharia Principles. The business activities carried out by MFIs include trading activities, namely in the service sector. In carrying out Shariah MFI business activities, it must be based on Sharia Principles. The method used in writing this article is normative research with a statutory and conceptual approach. The results of the study show that the Sharia Principles in this context are guided by the basic principles of Muamalah. The important objective in this research is the regulation in the laws and regulations regarding this matter whether it is in accordance with sharia principles. Harmonization between legislation as positive law in Indonesia with sharia principles sourced from the Qur'an and Hadith as the main legal sources of Islamic law is absolutely necessary to ensure legal certainty.
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HODA, Najmul, and Shankar Lal GUPTA. "Loan Portfolio of a Faith-based Microfinance Institution: An Empirical Analysis." Postmodern Openings 5, no. 1 (March 31, 2014): 65–94. http://dx.doi.org/10.18662/po/2014.0501.06.
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Sarwosri, Arieska Wening, Ulf Römer, and Oliver Musshoff. "Are African female farmers disadvantaged on the microfinance lending market?" Agricultural Finance Review 76, no. 4 (November 7, 2016): 477–93. http://dx.doi.org/10.1108/afr-02-2016-0012.
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Purpose The purpose of this paper is to examine whether social and/or cultural obstacles faced by African female farmers diminish their accessibility to lending opportunities provided by a commercial microfinance institution; and affect their repayment performance. Design/methodology/approach The underlying data set is comprised of information regarding 9,710 farmers from Madagascar and was provided by the AccèsBanque Madagascar. Logit and Tobit models are applied to determine gender effects on loan accessibility and repayment performance, respectively. Findings Even though female farmers are associated with a lower repayment performance, they have a higher rate of loan application approval compared to male farmers. Research limitations/implications The results are limited to Madagascar and other African countries with similar socio-economic conditions. Social implications Commercial microfinance institutions still provide access to credit for disadvantaged groups, such as female farmers. Originality/value To the best of the authors’ knowledge, this is the first study investigating gender-specific credit access and repayment performance of rural African farmers using a data set from a commercial microfinance institution without a social mission for females.
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Syamlan, Yaser Taufik. "The Circular Economy of the Islamic Group Lending Model: Lending Money for Garbage in Return." International Journal of Islamic Economics 2, no. 02 (January 8, 2021): 110. http://dx.doi.org/10.32332/ijie.v2i02.2580.
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The Model of Group Lending has been flourishing in the Microfinance Industry. This model has been used widely to serve the needy and un-bankable group of people by lending money plus interest addition. Islamic finance also embraces this model by omitting the interest and applying the Qardul Hassan to finance the members' daily needs. This divine scheme's problem is the microfinance's sustainability since they have a burden to bear the operational cost due to the non – interest feature of the financing. This paper tries to solve this problem by utilizing the household garbage as the media to repay the Qardul Hassan financing to the Islamic Microfinance Institution (IMFI). This would enable to create more added value product, selling it to get more income and achieving the organization sustainability.
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Syamlan, Yaser Taufik. "The Circular Economy of the Islamic Group Lending Model: Lending Money for Garbage in Return." International Journal of Islamic Economics 2, no. 02 (January 8, 2021): 110. http://dx.doi.org/10.32332/ijie.v2i02.2580.
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The Model of Group Lending has been flourishing in the Microfinance Industry. This model has been used widely to serve the needy and un-bankable group of people by lending money plus interest addition. Islamic finance also embraces this model by omitting the interest and applying the Qardul Hassan to finance the members' daily needs. This divine scheme's problem is the microfinance's sustainability since they have a burden to bear the operational cost due to the non – interest feature of the financing. This paper tries to solve this problem by utilizing the household garbage as the media to repay the Qardul Hassan financing to the Islamic Microfinance Institution (IMFI). This would enable to create more added value product, selling it to get more income and achieving the organization sustainability.
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Singh, Ritika, and Chandan Bhar. "System dynamics to turnaround an Indian microfinance institution." Kybernetes 45, no. 3 (March 7, 2016): 411–33. http://dx.doi.org/10.1108/k-05-2014-0111.
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Purpose – The purpose of this paper is to present a policy comparison tool for Indian Microfinance Institutions (MFIs) so that they can choose the best policy for implementation. It provides for turnaround of a troubled MFI by analyzing the performance of different policies. Design/methodology/approach – The paper has done a web survey to identify the need of a strategic tool for MFI. It has built a Decision Support System (DSS) using system dynamics. A corporate model of MFI has been constructed using iThink 10.0.2 software. A quantitative validity test has been done to find the robustness of the model. Finally four policies are tested and the performance indicators have been used to suggest the best policy. Apart from this DSS is used to test the implementation range of a policy. Findings – “Integration of Microfinance with country’s mainstream financial system along with provisioning 1 percent of outstanding loans” is recommended for the MFI as this will increase the financial performance. Research limitations/implications – In its present form the corporate model developed for MFI is not applicable for judging social performance. Therefore MFIs might be sceptic toward it. However, incorporation of certain performance indicators such as financial-self-sufficiency ratio might help in overcoming this reluctance. Practical implications – “Integration of Microfinance with country’s mainstream financial system along with restricting provision” will generate better performance for the MFI. Therefore this policy should be implemented by the MFI. There are other considerations which need to be taken into account while implementing this policy. The integration may require outsourcing of certain operations to banks, utilization of bank branches to disseminate knowledge related to the conduct of transactions, usage of customized bank software to handle the day-to-day business, development of new softwares for mobile messaging to help poor customers avail of schemes run by the banks, fill loan application forms online, send reminders for loan recovery; provide incentives such as upgradation of poor customers to become regular customers of banks. Social implications – By improving the health of the MFI a bigger goal to reach the poor will be achieved in the long run. The MFI has around five million clients at present and if the company becomes insolvent then the future of these clients is going to be impacted. The organization has interacted closely with these clients and therefore knows how to upgrade their financial state. Originality/value – The tool is first of its kind in the microfinance industry. So far the microfinance technology providers have dealt with Management Information System and Information and Communication Technology. The tool has been built to present a quantitative model for overall operations of the MFI. The simulation of this model helps in predicting future scenarios.
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Abid, Lobna, and Sana Kacem. "Why are we going to Green microfinance in Tunisia?" Environmental Economics 9, no. 4 (December 6, 2018): 1–7. http://dx.doi.org/10.21511/ee.09(4).2018.01.
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The aim of this paper is to shed light on the challenges that microfinance and the sustainability of its institutions (MFIs) can face when dealing with financial crisis and the alleviation of global poverty. Apart from its economic and social effects, microfinance has come to respond to increasing demands and take the environmental aspect into account, hence, the appearance of green microfinance. The pivotal role of the latter is to foster economic growth and investment through increasing the quality of the environment and the social inclusion. In this context, Tunisia has shown interest in the introduction of a new regulation that facilitates the allocation of green micro-credits. In order to combat poverty and reduce unemployment, ecological credits have been granted by the ENDA Tamweel microfinance institution. The ultimate goal of this study is to present the tendency of this new financing mechanism in Tunisia to achieve sustainable environmental development.
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Muljadi, Muljadi. "Peran Lembaga Keuangan Mikro Syari’ah BMT dalam Meningkatkan BUMDES dan Akses Keuangan di Banten." Journal of Government and Civil Society 1, no. 2 (February 22, 2018): 191. http://dx.doi.org/10.31000/jgcs.v1i2.443.
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Potential villages in Banten amounting to 1,273 and need to be empowered, Shari’ah Micro Financial Institution Baitul Maal Wat Tamwil (LKMS BMT) is a microfinance institution syari’ah targeted at people’s economy trying to develop productive businesses and investments with profit-sharing system. The main objective is to improve the economic quality of micro and small entrepreneurs, as part of efforts to alleviate poverty. Village Owned Enterprises (BUMDes) is a business entity which is completely or partially owned by the Village through direct participation derived from the wealth of the Village separated to manage assets, services and other businesses for the greatest benefit of the small town community. Potential BUMDes will be more prospective when synergized with Shari’ah microfinance institutions Baitul Maal Wat Tamwil (LKMS BMT). This syari’ah financial institution proved able to adapt with the village community. The concept of SDSB, one village one BMT. To achieve this it is necessary to have 5 pillars in support of the process, fostering behavior, fostering brotherhood, building synergy, building funds and market development, and excellent products.Keyword: Village, Shari’ah Micro Financial Institution, Village Owned Enterprises (BUMDes),
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Bakar, Nor Maisarah, Rashidah Abdul Rahman, and Zuraeda Ibrahim. "Client protection and sustainable performance in microfinance institution." International Journal of Productivity and Performance Management 69, no. 4 (December 16, 2019): 651–65. http://dx.doi.org/10.1108/ijppm-03-2019-0127.
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Purpose Microfinance institutions (MFIs) provide credit to low-income beneficiaries, enabling them to gain access to financial assistance. To ensure that clients are protected, all MFIs should adhere to basic corporate governance principles to guarantee uniform standards, transparency and good corporate governance practices in their institutions. Hence, the purpose of this paper is to explore the client protection practices and sustainable performance of Amanah Ikhtiar Malaysia (AIM), a leading MFI in Malaysia. Design/methodology/approach Closed-ended questionnaires were distributed to managers and assistant managers at 76 AIM branches across the peninsular Malaysia. A response rate of 68 per cent was achieved from the total questionnaires distributed. Findings The result shows that the level of client protection in AIM is high. It shows that accountability and debt collection process have a significant influence on the level of sustainable performance of AIM, whereas transparency and transaction costs have an insignificant impact on the level of sustainability of AIM. Consistent with the agency theory and institutional theory, the result also implies that having better debt collection process policy and structure, and accountability among management will enhance the level of sustainability of AIM. Originality/value Previous studies focused on the single issue of sustainability in microfinance, such as on repayment performance among the poorest people whom AIM served as clients. However, studies on the accountability towards clients are still underdeveloped by researchers. Hence, the current study fills the gap by examining whether client protection affects the sustainability of AIM.
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Kurniawan, Dhika Amalia, and Muhammad Faris Irwanto. "MOTIVATION ANALYSIS ON CUSTOMER OF ISLAMIC MICROFINANCE INSTITUTION." Capital: Jurnal Ekonomi dan Manajemen 2, no. 1 (September 3, 2018): 28. http://dx.doi.org/10.25273/capital.v2i1.3067.
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<p>In Ponorogo, one of microfinance institution developed by Pondok Modern Darussalam Gontor namely Baitul Mal Wat Tamwil La-Tansa Gontor. BMT La-Tansa Gontor has 2462 customers from various regions in Ponorogo. The high demand for financial services for the community, especially in Ponorogo makes the community more selective in choosing the financial institution that will be used, this is evidenced by the high motivation of customers to use the services of BMT La-Tansa Gontor Ponorogo.The purpose of this study is to analyze the customer motivation of using BMT La-Tansa Gontor services. This research used qualitative method with grounded theory. Data collection used observation techniques, interviews, and documentation. Determination of the sample used in this study using a purposive sampling, while data analysis method used is a method of miles and hubberman with internal and external motivation as an instrument. From this research, it can be concluded that the motivation on customer of BMT La-Tansa Gontor is caused by internal motivation; (1) Implement islamic principles; (2) Personal motivation; (3) Honest revenue sharing; and (4) Halal result. The factors from external motivation on BMT La Tansa Gontor customer (1) Service factor;(2) Influence of other; (3) Transparency factor, (4) Promotion factor; and (5) Transaction factor. From the results of this research, it is expected the service quality in BMT La-Tansa Gontor can be improved to build customer satisfaction, trust and loyalty. Researcher hopes to increase the socialization of BMT La-Tansa Gontor to the community to manage property according to Islamic principles.</p><p><br />Keywords: BMT La-Tansa Gontor, Customer, External, Internal, Motivation</p>
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Mawardi, Imron, Tika Widiastuti, and Ari Prasetyo. "Business Model of Islamic Microfinance Institution: Indonesia Case." Accounting and Finance Review (AFR) Vol.2(1) Jan-Mar 2017 2, no. 1 (March 16, 2017): 22–30. http://dx.doi.org/10.35609/afr.2017.2.1(4).
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Objective - Islamic Microfinance Institutions (IMFIs) grown very rapidly in the last 10 years in Indonesia. On 2015, the number of IMFIs' reached more than 5,000. As a business and social entity, IMFIs has various business models, the way in providing services and manages the business to achieve its goals. This study aims to determine the business models of IMFIs. Methodology/Technique - This study uses qualitative approach by case study technique of Robert K. Yin. Subjects of this study are IMFIs in Indonesia that selected purposively with managers as a key informant. Findings - The result is the business model of IMFI is determined by eight elements, namely: organizational orientation, business and social functions, the source of capital and allocation, investors and customers, financing usage, types of contract, allocation technique, and membership. Novelty - The elements that determine IMFI, will form a business model of IMFI which determine how IMFI runs its business activities to achieve organization objective. Type of Paper Review Keywords: Islamic Microfinance Institution; Business Model; Social Function. JEL Classification: G21, L22.