Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions
Despite the potentially important role of Islamic microfinance in making Islamic finance an inclusive financial system, the industry is faced with a wide ranging of issues. By analysing the experiences of two major Islamic microfinance institutions (IMFIs), namely Baitul Maal Wa Tamwil (BMT) in Indo...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
2019
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| Online Access: | http://irep.iium.edu.my/79474/ http://irep.iium.edu.my/79474/1/2019%20CP%207th%20AICIF%20Salina.pdf http://irep.iium.edu.my/79474/2/7th%20AICIF%20Salina-Norizan.pdf |
| _version_ | 1848788777277849600 |
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| author | Kassim, Salina Satar, Norizan |
| author_facet | Kassim, Salina Satar, Norizan |
| author_sort | Kassim, Salina |
| building | IIUM Repository |
| collection | Online Access |
| description | Despite the potentially important role of Islamic microfinance in making Islamic finance an inclusive financial system, the industry is faced with a wide ranging of issues. By analysing the experiences of two major Islamic microfinance institutions (IMFIs), namely Baitul Maal Wa Tamwil (BMT) in Indonesia and Amanah Ikhtiar Malaysia (AIM) in Malaysia, this study aims to learn from their experiences of the issues facing them in financing the poor. The study offers an area of novelty by undertaking a comparative analysis between both institutions in efforts to understand the peculiarities facing each IMFI, unlike the earlier studies which are commonly focusing on a specific IMFI. By employing a thorough review of the available literature, the study finds that human resource and sustainability are the main issues facing both IMFIs. While human resource is the most important factor ensuring success of the microfinance institutions, structural issues such as reliance on subsidies could jeopardise their sustainability. Findings of this study contribute towards providing important inputs for sustainability of the IMFIs as well as enriching the literature in the area of Islamic microfinance institutions. |
| first_indexed | 2025-11-14T17:46:13Z |
| format | Proceeding Paper |
| id | iium-79474 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:46:13Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-794742020-03-09T08:46:04Z http://irep.iium.edu.my/79474/ Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions Kassim, Salina Satar, Norizan HG Finance HG3368 Islamic Banking and Finance Despite the potentially important role of Islamic microfinance in making Islamic finance an inclusive financial system, the industry is faced with a wide ranging of issues. By analysing the experiences of two major Islamic microfinance institutions (IMFIs), namely Baitul Maal Wa Tamwil (BMT) in Indonesia and Amanah Ikhtiar Malaysia (AIM) in Malaysia, this study aims to learn from their experiences of the issues facing them in financing the poor. The study offers an area of novelty by undertaking a comparative analysis between both institutions in efforts to understand the peculiarities facing each IMFI, unlike the earlier studies which are commonly focusing on a specific IMFI. By employing a thorough review of the available literature, the study finds that human resource and sustainability are the main issues facing both IMFIs. While human resource is the most important factor ensuring success of the microfinance institutions, structural issues such as reliance on subsidies could jeopardise their sustainability. Findings of this study contribute towards providing important inputs for sustainability of the IMFIs as well as enriching the literature in the area of Islamic microfinance institutions. 2019 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/79474/1/2019%20CP%207th%20AICIF%20Salina.pdf application/pdf en http://irep.iium.edu.my/79474/2/7th%20AICIF%20Salina-Norizan.pdf Kassim, Salina and Satar, Norizan (2019) Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions. In: 7th ASEAN International Conference on Islamic Finance (7th AICIF), 3-5 December 2019, Ponorogo, Indonesia. (Unpublished) |
| spellingShingle | HG Finance HG3368 Islamic Banking and Finance Kassim, Salina Satar, Norizan Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title | Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title_full | Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title_fullStr | Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title_full_unstemmed | Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title_short | Issues and challenges in financing the poor : Lessons learned from Islamic microfinance institutions |
| title_sort | issues and challenges in financing the poor : lessons learned from islamic microfinance institutions |
| topic | HG Finance HG3368 Islamic Banking and Finance |
| url | http://irep.iium.edu.my/79474/ http://irep.iium.edu.my/79474/1/2019%20CP%207th%20AICIF%20Salina.pdf http://irep.iium.edu.my/79474/2/7th%20AICIF%20Salina-Norizan.pdf |