International Conference onIslamic Microfinance Organized By : CENTER OF ISLAMIC BANKING & ECNOMICS Held At: Faisal Auditorium Islamabad - Pakistan
International Conference on Islamic Microfinance organised by Al Huda in collaboration with Akhawat 13 June, 2011 Islamic Microfinance : An Outreach Analysis in Global Perspective Presentation By : Dr Shabbir Hussain MD, HHRD
“ Credit Plus” includes development and social services in comparison with “Credit Only” approach Integrated Approach Minimalist Approach Credit Only Credit + (Financial & Non Financial)
MF Models of Outreach based upon the integration level of supply chain Three- ProngedApproach Promotion of MED, training & helping linkage with banks NGOs as Facilitators NGOs V/WOs Specialized Banks Promotion of MED, training & providing Credit Support NGOs NGOs as Financial Intermediaries V/WOs Specialized Banks Promotion of MED, training & providing Credit V/WOs Specialized Banks Banks as MFIs
The effectiveness of Microfinance approaches varies across different levels of poverty HHRD Mudarba HHRD Murabah HHRD Qard Hasn
OUTREACH ANALYSIS OF SELECTED INTERNATIONAL MODEL OF MFIs
Outreach Analysis of Selected MFIs in South Asia (Source: www.micromarket.org,
Microfinance is fast emerging viable tool to reduce Poverty (Source: www.micromarket.org.
Outreach features of IMFIs IMFI retains the basic operational format of MFIs
Current Outreach of all MFIs in Pakistan exceeds 1.85 million Active Borrowers Data Source: Microwatch, PMN, Sep 2009 Presentation By : Dr Shabbir Hussain,
DtSource: Microwatch, PMN, Sep 2009 Presentation By : Dr Shabbir Hussain,
Only 5 to 10 % of the poor population in need of micro credit is currently covered Current Outreach 1.83 million borrowers Estimated Demand 27.7 million borrowers Access Access Quality Quality Products Products Funding Funding Sustainability Sustainability
29 Conclusion An estimated 72 percent of people living in Muslim-majority countries do not use formal financial services 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). Islamic microfinance is concentrated in a few countries, with the top three countries (Indonesia, Bangladesh, and Afghanistan) accounting for 80 percent of global outreach. 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.
Presentation By : Dr Shabbir Hussain, TJAZAK ALL Thank You!
Thank You CENTER OF ISLAMIC BANKING & ECNOMICS Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056E-mail : firstname.lastname@example.org Web: http://www.alhudacibe.com