Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Held At:
International Conference on Islamic Microfinance organised by Al Huda in collaboration with Akhawat 13 June, 2011
Credit Plus includes development and social services in comparison with Credit Only approach
Minimalist Approach
FINANCIAL INTERMEDIATION y Working Capital y Fixed Asset Loans y Savings SOCIAL INTERMEDIATION y Community Mobilization yGroup Formation y Social Collateral y Insurance
Integrated Approach
Credit Only
EDEVELOPMENT SERVICES yEntrepreneurship Training yProduction/Skills Training yMarketing SOCIAL SERVICES yEducation yHealth & Nutrition yLiteracy Training
NGOs as Facilitators
NGOs
V/WOs
V/WOs
V/WOs
Objective
Growth
Approaches
MED
HHRD Mudarba
HHRD Murabah
MFI
# of Borrowers
Self Sufficiency Ratio 98.80 106.65 187.17 159.07 133.14 102.00 111.53 164.10 79.70 90.43 162.44 48.80
Grameen Bank Bangladesh BRAC Bangladesh ASA Bangladesh Spondana India Bandhan India Cashpor India AML India Kash Pakistan Khushali Bank Pakistan FMBF Pakistan WDB Sri Lanka BRAC Sri Lanka
6,707,000 6,397,635 5,422,787 1,188,861 896,698 303,243 565,806 295,396 405,111 229,443 146,808 34,550
(Source: www.micromarket.org,
Poverty Transition
Microfinance Burrowers
Very Poor to Moderately Poor 48 Very Poor to Non Poor Moderately Poor to Non Poor No Change 22 26 27
continued--Group Dynamics
Islamic values of brother/sister-hood improves cooperation among the group members
PARTNERSHIP BASED
TRADE BASED
RENTAL BASED
Mudarba Musharka
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380,000 loans through 126 institutions operating in 14 countries Bangladesh has largest outreach (100,000 +) with two active institutions . However it represent about one percent of its microfinance market Syria and Indonesia has 3 % and 2 % of respective microfinance market 80 percent of global outreach is concentrated in three countries :Bangladesh, Indonesia and Afghanistan)
14
15
Cooperative Village Bank (Syria) NGO Rural Bank (Indonesia) NBFI Commercial Banks Total
<1 <1
41,421,580 21 122,475,158 62
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Afghanistan Bahrain Bangladesh Indonesia Jordon Lebanon Mali Pakistan West bank Gaza Saudi Arabia Somalia Sudan Syria Yemen Total
Indonesia
Microfinance Divisions of Islamic Banks (Islamic Rural Banks) Islamic Financial Cooperatives referred as bait Maal wat Tamwil (BMT) ; BMTs are large network of over 2000 institutions serving millions of poor Indonesian Muslims. These are backed and supported by over hundred million members The products are based on Mudaraba, Murabaha, Musharaka, Ijara and qard Hasan
Bangladesh
Islamic Bank Bangladesh Social and Investment Bank Al-Fallah and Rescue FINCA (Qard Hasan) Village Banking methodology with solidarity groups Akhuwat , HDF, Islamic Relief, CWCD, Farz Foundation ,HHRD
Afghanistan
Islamic Banking : Govt agencies s organizations finances small and medium scale enterprises AICMEU Bait un Nasr
Egypt Syria
Mit Ghamar Project : Modern Islamic banking Sanadiq project , Jabal Al-Hoss : Village Banks which can be replicated. The model is based on : (i) Musharka structure owned and managed by the poor (ii) financing based on Murabaha which provides high profit rates shared among members (iii) good governance through committees with sound election and voting procedures (iv) project management team responsible training of committee members (v) Financial management based on standardized bylaws,fair credit decisions and low transaction costs (vi) Financially viable operations with 100 % repayment rate (vii) equal access to both men and women (viii) UNDP provides matching grant equal to minimum share capital of village fund Muassat Bayat Al-Mal : Affliate of Hezbollah comprises qard AlHasan financing on profit loss sharing mode. It is run by volunteers Hodeidah Microfinance Program : Group methodology like Grameen but it uses Murabaha mode for financing
Lebanon
Yeman
Roughly 80% of the current borrowing is from the non-formal sector in Pakistan However, the cost of borrowing from the non-formal sector is 4% higher
Borrowings by sources
22%
78%
Approximately 60% of the non-institutional lending is through money lenders, Shopkeepers, and agriculture input dealers
Informal Lenders Feed Dealers Others 2% 12% Agra Input c Dealerds 22% Shopkeeper 15% Commission Agents 12% Money Lenders 37%
1999
PIR: PMN starts collecting and publishing member MFIs performance indicator report
2000
2001
2005
5 Microfinance Banks
2006
2009 2011
NMFB. BRAC-PAK
MFIs
Akhuwat Asasah Orangi Pilot Project Sindh Agriculture & Forestry Workers Cooperative Orgn (SAFWCO) Community Support Concern Development Action for Mobilization and Emancipation Network (DAMEN) Center for Women Cooperative Development (CWCD) Kashf Foundation CWCD HHRD
MFB
Khushhali Bank Ltd Network Microfinance Bank Ltd Pak Oman Microfinance Bank Ltd Rozgar Microfinance Bank Ltd Tameer Microfinance Bank Ltd First Microfinance Bank Ltd Kashf Microfinance Bank Ltd NRSP Bank
NRSP PRSP SRSP TRDP Lachi Poverty Reduction Project Sungi Development Foundation Orix Pakistan Sindh Rural Support Program Taraqi Foundation Save the Poor
RSP
Others
Largest Providers of Microfinance ( Number of active borrowers) 428075 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 SP
Presentation By : Dr Shabbir Hussain,
78878
KB
Kashf
P SP
NRSP
KB
FMFBL
Kashf
TMFB
Hussain,
, Se 2009
Access
Access
Quality
Quality
Products
Products
Funding
Funding
ustaina ility
ustaina ility
Conclusion
An estimated 72 percent of people living in Muslim-majority countries do not use formal financial services Islamic microfinance is concentrated in a few countries, with the top three countries (Indonesia, Bangladesh, and Afghanistan) accounting for 80 percent of global outreach. Of the total US $ 500.5 billion global Islamic finance market, 36 percent is located in the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE), 35 percent in non-GCC Southwest Asia and North Africa, and 23 percent in Asia (primarily Malaysia, Brunei, and Pakistan) (The Banker 2007).
Bangladesh is a country where conventional microfinance products have the largest outreach exceeding 18 million borrowers and Islamic Microfinance represents only 1 percent of its microfinance market.
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` TJAZAK