The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan

This study examines the perceptions of bankers, regulators and Shari‘ah scholars on the issues and challenges concerning the implementation of Islamic microfinance in Pakistan; and whether an appropriate Islamic microfinance instrument can be adopted as an alternative to the conventional model of mi...

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Bibliographic Details
Main Authors:	Abbas, Kausar, Abdul Razak, Dzuljastri
Format:	Book Chapter
Language:	English
Published:	The Malaysian Current Law Sdn. Bhd. (MCLJ) & International Institute of Advanced Islamic Studies (IAIS) 2013
Subjects:	HG Finance HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/36507/ http://irep.iium.edu.my/36507/4/05.09.14_-_Islamic_Transaction_03new0001-1.pdf

id	iium-36507
recordtype	eprints
spelling	iium-365072014-09-11T02:53:53Z http://irep.iium.edu.my/36507/ The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan Abbas, Kausar Abdul Razak, Dzuljastri HG Finance HG4001 Financial management. Business finance. Corporation finance. This study examines the perceptions of bankers, regulators and Shari‘ah scholars on the issues and challenges concerning the implementation of Islamic microfinance in Pakistan; and whether an appropriate Islamic microfinance instrument can be adopted as an alternative to the conventional model of microfinance for poverty alleviation. The research applied the questionnaire survey methodology where data was collected from five full-fledged Islamic banks of Pakistan. A total of 100 respondents were selected to complete the self- administered questionnaire and the response rate was 50 percent. Three of the sample banks were selected from Islamabad and two banks from Lahore because of the well-established banks in these two cities of Pakistan. The findings are divided into four sections: (1) The function of Islamic microfinance in poverty alleviation; (2) Islamic microfinance’s contribution to the community; (3) Islamic bank’s approach towards Islamic microfinance; and (4) Challenges for Islamic microfinance. It is shown in this study that generally, the Islamic bankers are unanimous that Islamic banks should offer Islamic microfinance and treat it separately from other products. There was general agreement amongst top and middle management that Murabahah, Dimishing musharakah and Ijarah are the most applicable models for Islamic microfinance schemes for the potential micro-entrepreneurs. It is concluded that the findings could provide insights to Islamic banks in diversifying their products to offer Islamic microfinance to the poor. Recommendations are made to have proper guidelines and policies if Islamic microfinance is offered to the poor. The Malaysian Current Law Sdn. Bhd. (MCLJ) & International Institute of Advanced Islamic Studies (IAIS) 2013 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/36507/4/05.09.14_-_Islamic_Transaction_03new0001-1.pdf Abbas, Kausar and Abdul Razak, Dzuljastri (2013) The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan. In: Islamic transaction and finance: principles and developments. The Malaysian Current Law Sdn. Bhd. (MCLJ) & International Institute of Advanced Islamic Studies (IAIS), IAIS Malaysia, pp. 397-412. ISBN 9789670379326
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG Finance HG4001 Financial management. Business finance. Corporation finance. Abbas, Kausar Abdul Razak, Dzuljastri The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
description	This study examines the perceptions of bankers, regulators and Shari‘ah scholars on the issues and challenges concerning the implementation of Islamic microfinance in Pakistan; and whether an appropriate Islamic microfinance instrument can be adopted as an alternative to the conventional model of microfinance for poverty alleviation. The research applied the questionnaire survey methodology where data was collected from five full-fledged Islamic banks of Pakistan. A total of 100 respondents were selected to complete the self- administered questionnaire and the response rate was 50 percent. Three of the sample banks were selected from Islamabad and two banks from Lahore because of the well-established banks in these two cities of Pakistan. The findings are divided into four sections: (1) The function of Islamic microfinance in poverty alleviation; (2) Islamic microfinance’s contribution to the community; (3) Islamic bank’s approach towards Islamic microfinance; and (4) Challenges for Islamic microfinance. It is shown in this study that generally, the Islamic bankers are unanimous that Islamic banks should offer Islamic microfinance and treat it separately from other products. There was general agreement amongst top and middle management that Murabahah, Dimishing musharakah and Ijarah are the most applicable models for Islamic microfinance schemes for the potential micro-entrepreneurs. It is concluded that the findings could provide insights to Islamic banks in diversifying their products to offer Islamic microfinance to the poor. Recommendations are made to have proper guidelines and policies if Islamic microfinance is offered to the poor.
format	Book Chapter
author	Abbas, Kausar Abdul Razak, Dzuljastri
author_facet	Abbas, Kausar Abdul Razak, Dzuljastri
author_sort	Abbas, Kausar
title	The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
title_short	The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
title_full	The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
title_fullStr	The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
title_full_unstemmed	The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan
title_sort	perceptions of islamic bankers, regulators and shari’ah scholars on islamic microfinance; a case study of pakistan
publisher	The Malaysian Current Law Sdn. Bhd. (MCLJ) & International Institute of Advanced Islamic Studies (IAIS)
publishDate	2013
url	http://irep.iium.edu.my/36507/ http://irep.iium.edu.my/36507/4/05.09.14_-_Islamic_Transaction_03new0001-1.pdf
first_indexed	2023-09-18T20:52:19Z
last_indexed	2023-09-18T20:52:19Z
_version_	1777410076232908800

The perceptions of Islamic bankers, regulators and shari’ah scholars on Islamic microfinance; a case study of Pakistan

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