Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh

Purpose – This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFI...

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Main Authors:	Haneef, Mohamed Aslam, Pramanik, Ataul Huq, Mohammed, Mustafa Omar, Muhammad, Aliyu Dahiru, Amin, Fouad M
Format:	Article
Language:	English English
Published:	Emerald Group Publishing 2015
Subjects:	H Social Sciences (General)
Online Access:	http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/1/Emerald_-_IMEFM-03-2014-0029.pdf http://irep.iium.edu.my/43487/4/43487_Integration%20of%20waqf-Islamic%20microfinance%20model%20for%20poverty%20reduction_SCOPUS.pdf

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recordtype	eprints
spelling	iium-434872017-11-24T09:37:27Z http://irep.iium.edu.my/43487/ Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh Haneef, Mohamed Aslam Pramanik, Ataul Huq Mohammed, Mustafa Omar Muhammad, Aliyu Dahiru Amin, Fouad M H Social Sciences (General) Purpose – This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications. Design/methodology/approach – The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf-based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs. Findings – The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs. Research limitations/implications – Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result. Practical implications – The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states. Originality/value – The present paper has developed an IWIMM for poverty reduction. Emerald Group Publishing 2015-06-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/43487/1/Emerald_-_IMEFM-03-2014-0029.pdf application/pdf en http://irep.iium.edu.my/43487/4/43487_Integration%20of%20waqf-Islamic%20microfinance%20model%20for%20poverty%20reduction_SCOPUS.pdf Haneef, Mohamed Aslam and Pramanik, Ataul Huq and Mohammed, Mustafa Omar and Muhammad, Aliyu Dahiru and Amin, Fouad M (2015) Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh. International Journal of Islamic and Middle Eastern Finance and Management, 8 (2). pp. 246-270. ISSN 1753-8394 http://www.emeraldinsight.com/1753-8394.htm 10.1108/IMEFM-03-2014-0029
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	H Social Sciences (General)
spellingShingle	H Social Sciences (General) Haneef, Mohamed Aslam Pramanik, Ataul Huq Mohammed, Mustafa Omar Muhammad, Aliyu Dahiru Amin, Fouad M Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
description	Purpose – This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications. Design/methodology/approach – The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf-based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs. Findings – The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs. Research limitations/implications – Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result. Practical implications – The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states. Originality/value – The present paper has developed an IWIMM for poverty reduction.
format	Article
author	Haneef, Mohamed Aslam Pramanik, Ataul Huq Mohammed, Mustafa Omar Muhammad, Aliyu Dahiru Amin, Fouad M
author_facet	Haneef, Mohamed Aslam Pramanik, Ataul Huq Mohammed, Mustafa Omar Muhammad, Aliyu Dahiru Amin, Fouad M
author_sort	Haneef, Mohamed Aslam
title	Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
title_short	Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
title_full	Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
title_fullStr	Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
title_full_unstemmed	Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh
title_sort	integration of waqf-islamic microfinance model for poverty reduction: the case of bangladesh
publisher	Emerald Group Publishing
publishDate	2015
url	http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/ http://irep.iium.edu.my/43487/1/Emerald_-_IMEFM-03-2014-0029.pdf http://irep.iium.edu.my/43487/4/43487_Integration%20of%20waqf-Islamic%20microfinance%20model%20for%20poverty%20reduction_SCOPUS.pdf
first_indexed	2023-09-18T21:01:57Z
last_indexed	2023-09-18T21:01:57Z
_version_	1777410682513260544

Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh

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