Islamic Development Bank - IDB Microfinance Experience
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  • The above model forms the basis for the entire operations of IDB and its reason to exist. It is through the Islamic Development Model that IDB should develop: Education programs Health programs Knowledge programs Leadership programs Governance programs Environmental preservation programs Infrastructure Development programs Research & Development programs Using the Islamic Development Model, find out best-fit solutions for developing the IFSI. Design a holistic strategy for the development of the IFSI Effectively implement key initiatives that can support, strengthen and ensure the orderly development of an inclusive IFSI. Build robust strategy and policy dialogue process of stakeholders. Partnership for ensuring the availability of required equity and venture capital support to the industry.
  • According to Data from the 10-Year Master Plan 284 IFIs operating in 38 countries , managing US$ 150 billion (Source CIBAFI). Further US$ 200 billion being managed according to Shariah rules by Islamic windows of conventional financial institutions. More than 250 Shariah compliant mutual funds currently managing about US$ 11 billion (Source The Islamic Banker) LMC lists 77 corporate and sovereign Sukuk issues worth US$ 17.97 billion No established source of data for Takaful Industry. Current estimates state that as of 2005 78 Takaful companies with average growth rates of 63% per year during 1995 to 2000 . The gaps in the IFSI have been identified as a result of various studies including the joint IDB-IFSB 10-year master plan for the iFSI as wella s discussions with industry players. Each of the components of the IFSI Development Program being presented to you today, is meant to deal with either one or more than one of these gaps.
  • IDB Guidelines for intervening and financing Micro-enterprises, Very Small Enterprises & SMEs. Classification, Targeting Micro-enterprises/VSEs: characterised by modest size of funds (US$ 100-25,000), localised market & a small number of employees (1-20 people) ; SMEs : characterised by a larger size of initial investment ( $25,000<$50,000 ), larger market accessibility & more employees; Target groups: Farmers, Artisans/craftsmen, women’s groups, small-scale business entrepreneurs, University graduates etc. Existing and/or new income generating and productive projects will qualify under the scheme in services & productive sectors (agri-business, industry etc.) Financing of the scheme will be through loan (LDMC and/or Ordinary loan) extended to & guaranteed by the respective governments while funding for SMEs will be similar to the lines of financing extended to NDFIs at a 3.5% Mark-up; The government will extend the loan to local financial intermediaries (NGOs, micro-credit institutions, village banks etc.) on pre-agreed terms & conditions to be utilised in financing μEs/VSEs and repay the loan while bearing the exchange risk; IDB will select, in consultation with the concerned Government, a coordinating financial institution (Central/Islamic bank, NDFI etc.) to interface between parties, administer the special/imprest accounts, administer separate accounts for the funds and participate in committees ; Projects’ financing will be extended in local currency. The selected financial intermediaries will be fully responsible for identifying, processing and following up implementation as well as repayment recovery ; Max. financing per project for μEs/VSEs is up to US$ 25,000 and for SMEs is between US$ 25,000-US$ 100,000; Project repayment period is up to max. 5 years for μEs/VSEs & for SMEs as per current terms & conditions of IDB mode of financing . Purchase and resale transactions are not eligible except for business related to the sale of agricultural and/or industrial production inputs and equipment; Collaterals: third party, mortgage of assets, group guarantee, assignment of receivables.
  • COD 1 Microfinance: 2 projects of microfinance for µVSEs approved between 2002-2005: ID 3.068 million. 1 project (Maldives) is under implementation: (ID 2.308 million). It has not disbursed yet. 1 project (Tajikistan) is under implementation (ID 0.76 million) .It has not disbursed yet. COD 2 Microfinance: 6 projects of microfinance for µVSEs approved between 2001-2003: ID 8.6672 million. 1 project (Guinea) has been completed: ID 0.994 million. 1 project (Senegal: ID 2.26 million) disbursing with delays: it has disbursed around 60%. 3 projects (Benin: ID 1.00 million), (Cameroon: ID 0.827 million), (Mali: ID 1.01 million) have not disbursed yet. 1 project (Uganda) has been cancelled (ID2.3 million). 1 project (Niger) is being appraised (ID 2.02 Million). COD3 Microfinance: 4 projects of microfinance for µVSEs approved between 1999-2002: ID 20.22 million. 1 project (Yemen) has been completed: (ID 4.4 million) 1 project (Tunisia) is under implementation (ID 3.92 million) .It has disbursed around 35%. 1 project (Egypt) is under implementation (ID 7.3 million). It has disbursed around 85%. 1 project (Palestine) is under implementation (ID 4.60 million). It has not disbursed yet.
  • Financial entitlements such as termination payments, micro-grants, training and employment programs are often more suitable for immediate post-crisis situations, as well as for assisting the chronically poor and high-risk, low-experience groups. Grants, rather than microcredit, can be best used to overcome the social isolation, lack of productive skills, and low self-confidence of the extreme poor, preparing them for eventual use of microcredit. Micro-grants and other financial entitlements can work well as first steps in comprehensive programs designed to “graduate” the poor from vulnerability to economic self-sufficiency. Suitable candidates for one-off, targeted “safety net” grants that enable them to rebuild their livelihoods and replace lost assets include: Those hit by crisis who may need a temporary safety net Displaced persons during or immediately following a conflict Those affected by natural disasters such as earthquakes and floods Coordination with any existing microfinance institution is important as there may be microfinance institutions that are strong and flexible enough to provide a similar service to their clients on a commercial basis.
  • LESSONS TO BE LEARNT FROM IDB MICROFINANCE EXPERIENCE Based on IDB experience in Micro enterprises financing projects in member countries, future Microfinance projects should incorporate the following lessons: Microfinance Projects Design and implementation IDB intervention framework. With limited professional specialised in Micro finance projects preparation and launching, IDB should rehabilitate its current approach by adopting a State-of-the-art Microfinance Intervention Framework. To do not reinvent the wheel IDB may adapt to its specific needs the Ready-to-Use Microfinance Frame work Package approach adopted by most Development Banks and Multilateral lenders to the microfinance sector. IDB Involvement at project formulation. The above mentioned constraints and challenges facing the Micro Finance operations implementation should exhort IDB to be more involved in the early phase of Projects/Programs formulation. Official requests submitted from Governments to IDB for contribution in Micro Finance operations should be practically concept cleared in principle as per eligibility to IDB Micro Finance intervention framework. This approach will enhance project quality at entry. Programs rather than projects. It is more efficient and effective to invest in long-term programs in support of a few policy objectives rather than in short-term stand-alone projects that may have less impact and cost more to initiate and implement. Involving Community Based Organizations and beneficiaries. Communities should be involved in project design so the projects fit community needs from the outset. Pilot efforts to test alternative methods for enhancing beneficiary participation should be launched in the future. Linking grants to project implementation. Non-loan resources help to strengthen project implementation, especially grants to invest in seed money for pilot projects and innovative approaches that governments are often reluctant to fund. Thematic Partnerships. Given IDB’s limited resources, Micro finance interventions should be coordinated with collaborating agencies along major themes such as, community development, etc. Synergies and complementarities should also be built up with IDB’s major partners in member countries, such as the World Bank Group (WBG), the Arab Fund for Economic and Social Development (AFESD), the OPEC Fund for International Development, the International Fund for Agricultural Development (IFAD), African Development Bank (AfDB), and Asian Development Bank (ADB) etc. International support & the need for transitional organizations. Bilateral and multilateral organizations have played a significant role in providing assistance to international and national MFIs and Commercial Banks through training, providing technical support, developing the skills of MFI staff and supporting as well as teaching clients to become better entrepreneurs. Multilateral Financial Institutions, like IDB/World Bank Goups, can provide the seed capital and initial technical expertise to establish such quasi private-government body. This body will legitimise the commercial Microfinance sector and serve as an investment vehicle and source of long-term capital for national MFIs still in their infant stage of development. It would also be a medium to provide governance support and technical assistance to the MFIs helping them to move along the institutional development path. Keeping this in view, it may be desirable to initiate new approaches that would permit, in parallel with the actual mechanism, to better accommodate profit oriented MFIs profiles. This would contribute to develop the financial viability and long term sustainability of the MFI project partners by inculcating them progressively a market-oriented functioning, thus fostering their institutional and financial autonomy. Competitiveness of IDB Micro-financing program Compared to similar projects financed by other multilateral lenders, IDB financing appears competitive for the following reasons: The initial loan conditions ( to these Governments ) are very concessional in terms of duration and grace periods: 25 to 30 years’ tenure with only administrative charges (cost recovery) lump sum service fee (0.75 to 2.5%). The loan conditions (to the intermediary MFI) are softer in terms of duration and grace periods: 0% to 2.5%, as compared to 2% minimum for AFD (French Development Agency) for example, and higher rates for AfDB (with shorter maturity), for example. This obviously has a positive impact on the final conditions to the ultimate beneficiary, the micro-entrepreneur (15 to 20% p.a. (on IDB resources), as compared to 22 to 24%). The flexibility authorized regarding sub projects size is higher: several lenders do not allow more than US$ 4,300 per sub-project, for a duration that generally does not exceed one year, and exceptionally 18 months. IDB financing in turn allows an average financing maturity of 36 months, with 5 years limit, exceptionally, and a range of financing up to US$ 25,000 per project.
  • This model effectively sums up the various components of the IFSI development program. As you can observe the overall direction is provided by the Islamic Comprehensive Development Model. The resources for these programs will be procured from various entities and institutions which would then be converted into income generating activities for the benefit of the Industry in general and individuals in MCs in particular. This top down approach would be supplemented with a bottom up strategy for microfinance which would make our people more productive and enhance their earning capabilities.
  • Promotional Social Safety Net Interventions Package Training ( Entrepreneurship, Vocational training, career guidance, Management, skills upgrading Counseling and Advisory Services Marketing Assistance Information Technology development and transfer Business linkages promotion ( Subcontracting, Franchising and Clusters and collaborative production networks) Access to finance and financial services Assets transfer Job Placement Other Poverty alleviation interventions such as Grants to education, house extension etc
  • Frontier Issues The donor community and larger microfinance world have learned much over the past few decades about the best ways to support the emergence of inclusive financial systems. However, many core frontier issues remain unresolved: Extending rural (especially agricultural) finance into sparsely populated areas Expanding services like microinsurance, leasing, and remittances to poor customers Improving social performance measurement and monitoring Defining the lower limits of viable microfinance and employing other interventions, including grants, if more appropriate Developing replicable strategies for unlocking country-level capital markets for microfinance Identifying the role of donors relative to international equity and loan funds Finding cost-effective and sustainable ways to combine non-financial development services with financial services Intervention in these areas pose particularly difficult challenges for donors. However, innovation in these and other frontier areas should not be seen as a justification for projects that do not follow good practice guidelines. Many financial institutions, support networks and other actors are regularly making breakthroughs on these issues. It is hoped that donor guidelines in these and other areas can be continuously updated to reflect the state of the art.
  • Using the Islamic Development Model, find out best-fit solutions for developing the IFSI. Design a holistic strategy for the development of the IFSI Effectively implement key initiatives that can support, strengthen and ensure the orderly development of an inclusive IFSI. Build robust strategy and policy dialogue process of stakeholders. Partnership for ensuring the availability of required equity and venture capital support to the industry. To revive Sunnat Al-Waqf by developing the income generating capability of properties in the Awqaf Sector. Establish an Awqaf Bank having the functions of Asset management Investment management. Project financing on BOT basis Market development for Awqaf products. Achieve the above through networking and joint ventures with local financial institutions and funds.
  • IDB’s past 30 years’ achievements List of 8 Institutions - AAOIFI - IFSB - CIBAFI - IIFM - IIRA - Arbitration Center - WWF - IRTI IFSB has received requests for developing Islamic micro-insurance products. The 10-Year Programme of Action to Meet the Challenges Facing the Muslim Ummhah in the 21st Century, adopted by the 3rd Extraordinary OIC Summit, held in in Makkah al Mukarramah from 5 - 6 Dhul Qadah 1426H ( 7 - 8 December 2005), called for addressing the "Multiplicity of Islamic Jurisprudence" by calling upon the Islamic Fiqh Academy to coordinate religious rulings in the Muslim world. The 'Ten-Year Master Plan for the Development of IFSI' prepared jointly by IRTI and IFSB also stated that multiplicity of Shariah rulings as an impediment towards harmonization of standards in the industry. At the level of the international financial system, the apex body is the G-20, comprising of Finance Ministers and central bank governors of the following developed and emerging market countries: (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia , Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia , South Africa, Turkey , the United Kingdom and the United States of America). The European Union is also a member The mandated function of the G-20 is to deliberate on a range of financial and monetary matters in an effort to arrive at consensus and steer other international bodies.
  • The Financial Stability Forum (FSF), comprises of three senior-official level representatives from G7 (Finance Ministry, Central Bank, leading Supervisory authority), IMF, World Bank, BIS, OECD, and other specialized Committees. The mandated function of the FSF is to assess vulnerabilities, to identify and oversee action, and to improve coordination and information exchange. To set strategic objectives and goals for the development of the IFSI. To support cross border convergence of Fiqh/Shariah interpretations To provide national level direction for IFSI development To assign functional and operational specialization amongst the standard setting bodies of the IFSI

Islamic Development Bank - IDB Microfinance Experience Presentation Transcript

  • 1. IsDB Microfinance Experience
  • 2. Comprehensive Human Development Nafs (Self) Maal (Wealth ) Aqal (Knowledge) Nasl (Posterity) THE ISLAMIC VISION OF DEVELOPMENT Maqasid Al-Shariah Deen (Religion) Islamic Financial Services Industry Institutional Management of Wealth Security & Basic Needs Property Honour Knowledge Higher Education Science & Technology Education Capacity Building Nutrition & health Fiduciary Duty Sports Environmental preservation Means to an end Research & Development Moral Education Transparency Capacity Building Governance Protection Justice Values
  • 3.
    • More than 300 Islamic Financial Institutions
    • In over 65 countries
    • Managing assets of approximately US$ 1.0 trillion in Shariah compatible manner
    • More than 15% annual growth
    • Worldwide recognition
    Significant resources potential for Islamic Microfinance Industry
  • 4. Need for an Islamic Microfinance Development Strategy
    • Over 3 billion people living on less than two dollars a day
    • Over 2/3 of world refugees are Muslims
    • Lowest Five among IDB member countries account for over half a billion (528 million) of the world’s poor (with incomes below $2 a day)
    • Lowest Ten account for over 600 million of the world’s poor
    • Among 500 million micro-entrepreneurs: currently Less than10%, i.e. 50 million, can access credit…
    • The informal sector represents over 60% of the active population of most developing countries
    • Over 7,000 Micro-Finance Institutions (MFIs) have difficulties to access the capital markets
  • 5.
    • Poverty alleviation thru provision of suitable and sustainable access to financing.
    • Capacity building
    • Nurturing entrepreneurship support at grass roots level
    • Introduction of Islamic financing modes
    IDB’s µFinance Current Strategy
  • 6. Main Features of IDB’s Current µ Finance Scheme
      • Country eligibility: Low Income and LDMCs
      • Mode of Financing: Loan – Service fee 0.75 to 2.5%
      • Tenor: 25 to 30 years with 7 t0 10 grace period
      • µ project investment: US$ 5,000 per project
      • Maturity: 3-5 years
      • Beneficiaries contribution: 10-20% of project cost
  • 7. IDB Government Central Bank US$ account in commercial local bank Revolving fund + 65% of markup 35% of markup (operational cost of NGOs ) Financial Intermediary/NGO Micro-entrepreneurs (in local currency) External auditors Key: Physical transfer money Reporting to/instructing LDMC loan at 0.75% for 30 yrs incl 10 yrs grace US$ at max. 2.5% pa 24-30% pa (local currency) 20-22% pa (local currency) Max 5 yrs incl 2 yrs grace Repayment loan
  • 8. IDB µFinance Operations IDB µFinance ACHIEVEMENTS AND IMPACT
  • 9. SKILLS POVERTY LINE The poor request to start his assistance with a:
      • Promotional Social Safety Interventions Package :
      • Literacy & Awareness, Counseling
      • Vocational training & Skills upgrading,, career guidance, Management,
      • Entrepreneurship & Business linkages promotion (Subcontracting, Franchising and Clusters and collaborative production networks),
      • Community Development Basic skills,
      • Other Poverty alleviation interventions such as Grants to education, house extension
    Balance of The Poor’s Professional skills
  • 10. The poor request mobilizing Package of Business Development Services Counseling, Training Experiences Networking access to markets SKILLS POVERTY LINE Counseling, Training Experiences Networking access to markets Balance of The Poor’s Professional skills
  • 11. The poor request mobilizing Package of Business Development Services Counseling, Training Experiences Networking access to markets Business Incubators Services SKILLS POVERTY LINE Balance of The Poor’s Professional skills
  • 12. The poor request mobilizing Package of Business Development Services Counseling, Training Experiences Networking access to markets Business Incubators Services Upgrading services for BDSIs and MFIs SKILLS POVERTY LINE Balance of The Poor’s Professional skills
  • 13. The poor request mobilizing Package of Business Development Services Counseling, Training Experiences Networking access to markets Business Incubators Services Upgrading services for BDSIs and MFIs Designing innovative BDS & appropriate technologies Adapted to the Poor’ needs SKILLS POVERTY LINE Balance of The Poor’s Professional skills
  • 14. The poor request mobilizing Package of appropriate Financial Services ECONOMIC POVERTY LINE VISION / STRATEGY / APPROACH Continuing on Skills Upgrading assistance Balance of Poor Self-Sufficiency
  • 15. The poor request mobilizing Package of appropriate Financial Services Capital loans Micro-Grant Consumer loans Micro-Savings Micro-Housing loans Education loans Micro-Pensions Micro-Insurance VISION / STRATEGY / APPROACH ECONOMIC POVERTY LINE Balance of Poor Self-Sufficiency
  • 16. Role of Micro-grants in IDB Microfinance Operations
    • To
    • Rebuild livelihoods
    • Replace lost assets
    • Overcome social isolation
    • Gain productive skills
    • Graduate to economic self-sufficiency
    • Helps groups: high-risk
    • In immediate Conflicts and Post conflicts environments
    • In severely disadvantaged rural areas
    • In intervention situation for the chronically destitute
  • 17.
    • Microfinance Projects Design and implementation mechanism
    • IDB may adapt Ready-to-Use Microfinance Frame work Package approach adopted CGAP consortium of donors.
    • More IDB involvement in early phase of Projects/Programs formulation
    • Investment in long-term programs in support of a few policy objectives rather than in short-term stand-alone projects
    FROM IDB µFINANCE EXPERIENCE
  • 18. IFS DEVELOPMENT PROGRAM : THE WAY FORWARD Awqaf Sadaqa Zakat IDB Pov. All. Fund Corporate Donations Others Comprehensive Human Development Community A Community B Community C Individual 2 Individual 1 Individual 3 Individual 1 Individual 1 Individual 2 Individual 2 Individual 3 Individual 3 M I c r o f I n a n c e IFS Development Fund Other IFS
  • 19. Understanding the Poor Rights & Needs Variety of Products
    • Housing loans
    • Education loans
    • Life cycle products
    Flexible financing Products
    • Small initial loan sizes
    • Larger loans over time
    • Longer terms
    No Collateral Special Services & treatment
    • Respect, connection with pertinent stakeholders
    • Rapid response, and access to services
    • Group guarantee
    Promotional Social Safety Net Interventions
    • Information, Counseling
    • Training, skills upgrading
    • Marketing Assistance
    • Technology devmt, transfer
    • Business linkages
    Zakat applicable Waqf applicable Zakat &Waqf applic ZA WA WA ZWA WA ZA ZWA ZWA ZWA Lessons to be learnt from IDB experience Asset Building, Risk Mitigating Products
    • Voluntary savings
    • Health and life insurance
  • 20.
    • Making Economic Policies & Growth Pro-poor
    • Re-distributive policies (targeting the poor)
    • Providing Social Safety Nets to poor & marginalized groups
    • Addressing Social barriers & issues facing women in economic development
    Lessons to be learnt from IDB experience
  • 21.
    • Making Economic Policies & Growth Pro-poor
    • Targeted programmes and projects to enable the poor to benefit from economic growth through :
    • Labour intensive projects,
    • Telecommunications, electricity, roads, infrastructure,
    • Food security projects, post-conflict/reconstruction projects,
    • Environment sustainability and renewable energy, micro-credit, cross-cutting projects, etc.
    Continued Lessons to be learnt from IDB experience
  • 22. Income of USD10 million Waqf @ 5% return, would provide average loans of $100 to 5000 Poor “ Zakat & Waqf Microfinance” efficiency Appropriate risk management Mechanism should be established to protect the Waqf from decay . Zakat, Takaful Funds may be the alternative, . 90,000 benefeciaries would be covered if 90% of the Waqf used in microfinancing.
  • 23.
    • Promote Islamic Microfinance Houses (IMH)
    • Objectives: to complement the Comprehensive Human Development model by providing access to integrated Islamic Microfinance financial services to the poor in our member countries
    • The Microfinance Houses Development Programme would initially entail a pilot project in 5 member countries for creating and/or strengthening existing Microfinance institutions.
    Continued Lessons to be learnt from IDB experience
  • 24.
    • The IMH would also undertake other interventions which would strengthen the livelihood of the poor, such as;
      • Investments in public infrastructure, including roads, communications and education which provide a foundation for self-employment activities.
      • Community-level investments in commercial or productive infrastructure (such as market centers or small-scale irrigation infrastructure) to facilitate business activity.
    Continued Lessons to be learnt from IDB experience
  • 25. Lessons to be learnt from IDB experience
  • 26.
    • Rural (esp. agricultural) finance
    • Services like microinsurance, leasing, and remittances
    • Social performance measurement
    • Defining the lower limits of viable microfinance and
    • Employing other interventions, including grants
    • Replicable strategies for unlocking country-level capital markets for microfinance
    • Role of donors relative to international equity and loan funds
    • Cost-effective and sustainable ways to combine non-financial development services with financial services
  • 27.
    • ISLAMIC FINANCIAL SECTOR DEVELOPMENT AND QWICK WINS MICROFINANCE INITIATIVES
    • IDB POVERTY ALLEVIATION FUND
    • THE ISLAMIC MICROFINANCE DEVELOPMENT FRAMEWORK
  • 28. Model of an Ideal Islamic Bank
    • A Universal Bank covering
      • Commercial Banking
      • Investment Banking
      • Advisory Services
      • Custodial Services
      • Asset Management
      • Zakat Management
      • Awqaf Development
      • Microfinance
    • This bank should be a vehicle for equitable distribution of wealth.
  • 29. IDB’s Role in Islamic Financial Sector Development
    • Recent Initiatives
    • “ Ten-Year Framework for Developing the IFSI”, Joint Initiative
    • Establishment of a Policy Dialogue Working Group
    • IFSI Development Technical support proposal
    • IFSI Development Program
    Previous Initiatives  Equity investments in IFIs  Establishment of eight infrastructure institutions  Research, training and technical assistance  Development of financial products/funds (UIF, IBP) and Awqaf sector
  • 30.
    • Provide Supportive Legal, regulatory and tax framework
    • Ensure Macroeconomic Stability
    • Keep Inflation in Check
    • Curb Speculative Forces in Financial Markets
    • Integrate Awqaf and Zakah in National Policy
    • Support Civil Society Efforts
    Macro Perspective: Policy & Regulatory Framework
  • 31.
    • Should there be Prudential Regulation for Non-deposit-taking MFIs?
    • Should Non-registered Entities be Prohibited from Lending?
    • How should Islamic MF be Separated from Conventional MF in a Dual System?
    Macro Perspective: Policy & Regulatory Framework Resolves the Unresolved Issues in Banking Sector Regulation and Supervision that Affect Microfinance
  • 32.
    • Basic financial infrastructure, Range of services required to reduce transaction costs, increase outreach, build skills, and foster transparency
    • Payment Systems: Only large Islamic FIs have access to electronic payment systems
    • 3. MFIs working for the poor may work through the larger Islamic FIs by forging alliances with them
    Meso Perspectives: Infrastructure, Networks, Technical Service Providers
      • Transparency and Information: High-quality auditors and rating agencies, credit bureaus, reliable information software - scarcely available to Islamic MFIs
      • Existing MF-specific Agencies expand scope to include Islamic MF; or Existing Agencies for Mainstream IFIs to absorb MF services
      • Proactive role of Donors in Development of Islamic MF Rating
  • 33.
    • Diverse Organizational Structures:
    • Informal MF Providers,
    • Member-Based Organizations,
    • Non-Government Organizations,
    • Formal Financial Institutions,
    • Commercial Banks
    Micro Perspectives: Islamic Microfinance Providers Diversity should be given due recognition in regulation Need to Develop an Integrated Structure
  • 34.
    • Shariah Compliance
      • Shariah Boards
      • Fiqhi Issues
      • Divergent Perceptions
      • Confidence of Users
    • Collective Resolution of Shariah Issues
    Micro Perspectives: Islamic Microfinance Providers
  • 35. RECOMMENDATIONS Cooperatives-NGOs Efficient Management of Community Assets, Combine Social and Economic Agenda Effectively, Islamic Financial Institutions Recognize MF with Distinct Risk-Returns, Undertake Direct and Indirect Financing, Linkage with Grass-root NGOs, Facilitate Capital Market Participation of MFIs Awqaf & Zakah Funds Preserve and Develop Community Assets, Undertake TA, Transform the Destitute into “Bankable” Clients Government Agencies Create Supportive Policy and Regulatory Environment for IMFIs Concerted Efforts by ALL Stakeholders to Make Finance Work in Muslim Communities through Islamic Finance
  • 36. THANK YOU