understanding islamic microfinance

7/25/2019 Understanding Islamic Microfinance

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What is Islamic Microfnance?Making it a Sustainable Reality


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!resenter

s !"R# I$ Raf%uin Shikoh !"R# II$ "ti& R 'han


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"gen

a !resentation$ () min *+"$ ,- min


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Section 1: Global Microfnance Context (Part 1)

lobal Microfnance Dri/ers0 122ortunities

What is Microfnance?

3ansca2e 4 key 2layers

Im2act + 5hallenges

Section 2a: Islamic Microfnance

What is Islamic Microfnance?

'ey Islamic Microfnance ri/ers0 122ortunities

3ansca2e 4 'ey 2layers0 geogra2hies

Im2act6 5hallenges + 122ortunity

Section 2b: Islamic Microfnance -- Part 2 to be delivered at the nextsession

Islamic Microfnance core moels

Islamic Microfnance structures

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a


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Summary

MICR!I"#"C$%&an'in or the *oor

&i need exists 4 7owe/er 2o/erty alle/iation is toobig a 2romise8 Ind+str, is roinbut showing signso& 2roblems 9:2rimarily e;cess lening an aggressi/e

collection8 akin to sub%2rime mortgage leningMicrofnance an Islamic fnance ha/e much incommon.

Poth em2hasiUe the goo o& society as a whole. Poth

a/ocate entre2reneurshi2 an risk sharing anbelie/e that the 2oor shoul take 2art in suchacti/ities. Poth &ocus on e/elo2mental an social

goals. Poth a/ocate fnancial inclusion. Poth in/ol/e2artici2ation by the 2oor. #here are howe/er6 some

2oints o& iAerence between the two.@ :

6 ntro4 to sla)ic *icro#inance, *o&a))ed 7baidulla&, BF


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What is Islamic

Microfnance?

6 ntro4 to sla)ic *icro#inance, *o&a))ed 7baidulla&, BF

Islamic "22roach to !o/erty "lle/iation$:

1) Charity9SaaFa< % Vakat6 SaaFa Tariya or WaF& 9enowment0 trust"llah6 I seek re&uge with ou &rom sin an hea/y ebt@. When someone remarke6

>how o&ten you seek re&uge &rom hea/y ebt@6 he re2lie6 >when a man gets intoebt6 he s2eaks an tells lies6 an he makes a 2romise an breaks it@ 9Pukhari anMuslim#he best among you are those who are best in 2aying oA ebt@ 9Muslim"n co/et not that whereby "llah has mae some o& youe;cel others. Men shall ha/e a share o& that which they ha/e earne6 an women ashare o& that which they ha/e earne. "n ask "llah o& his bounty. Surely "llah hasthe 2er&ect knowlege o& all things@ 9($,C"llah has 2ermitte trae an &orbien riba.@ 9C$CJ)

Illustration$ X C-BC DinarStanar

Core sla)ic

Financin( contracts

Po$erty Alle$iation

Responsibility


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Islamic Microfnance$

3ansca2e 5urrently Islamic microfnance is concentrate in a &ew countries6with Inonesia6 Panglaesh6 !akistan an "&ghanistan ranking inthe to2. "ccoring to the C-- 5onsultati/e rou2 to "ssist the !oor95"!< sur/ey6 Islamic microfnance accounts &or abo+t 6/? *ercent/ o lobal microfnance es2ite a global Muslim 2o2ulationo& about B.C billion.

In a C--J global sur/ey on Islamic microfnance6 5"! collectein&ormation on o/er BC) institutions an contacte e;2erts &rom B=Muslim countries. #he sur/ey an a synthesis o& other a/ailableata re/eale that Islamic microfnance has a total estimate globaloutreach o& only ,-6--- customers.

5"! sur/ey ientife that o/er J- 2ercent o& the 2roucts oAereare Murabaha. Islamic MLIs generally oAer only one or two Sharia%com2liant 2roucts.


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#he 5onsultati/e rou2 to "ssist the !oor 95"!


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= &anladesh Case St+d,: IPP3 9Islami Pank Panglaesh 3imite&or%2roft@ Shariah%com2liant

microfnance nees to be e/elo2e

se o& *ar hasan6

Introuction o& micro%#aka&ul

Islamic Microfnance &or all globally


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Raf%uin ShikohE$

rafshikoh[inarstanar.comW$

a/isory.inarstanar.com

Pusiness Meia Research "/isory


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