Towards the expediency and leniency of Islamic finance through Islamic micro credit financing

This paper is intended to study the opportunities available for Islamic banks to explore the micro credit financing in Malaysia. The effectiveness of micro credit financing, as a tool to eradicate poverty, is factual since many countries that practice the scheme are able to provide the poor with inc...

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Bibliographic Details
Main Author:	Ariffin, Muhammad Irwan
Format:	Conference or Workshop Item
Language:	English
Published:	Jabatan Ekonomi Awam & Kewangan, Fakulti Ekonomi, Universiti Utara Malaysia 2005
Subjects:	HG3368 Islamic Banking and Finance HG3691 Credit
Online Access:	http://irep.iium.edu.my/62824/ http://irep.iium.edu.my/62824/1/62824_Towards%20the%20Expediency%20and%20Leniency.pdf

id	iium-62824
recordtype	eprints
spelling	iium-628242018-06-28T08:30:20Z http://irep.iium.edu.my/62824/ Towards the expediency and leniency of Islamic finance through Islamic micro credit financing Ariffin, Muhammad Irwan HG3368 Islamic Banking and Finance HG3691 Credit This paper is intended to study the opportunities available for Islamic banks to explore the micro credit financing in Malaysia. The effectiveness of micro credit financing, as a tool to eradicate poverty, is factual since many countries that practice the scheme are able to provide the poor with income-generating jobs. In Malaysia, despite the rapid development in the banking sector, little progress is seen in Islamic micro credit financing. Islamic micro credit financing is an effective tool to link between Islamic banks and the poor. This will enhance the moral features that have been lacking in Islamic banking and finance all these years. The lack of research and development in the Islamic banking and financial products; together with high transaction costs, moral hazard and deficient securities with small units contributed to the unwillingness of Islamic banks to explore micro credit financing area. Al-Mudharabah and al-musharkaah contracts are the most suitable mode to be used in Islamic micro credit financing since the interest of both parties are protected. The Islamic banks need to optimize their resources toward helping the poor to gain profit in their business, and they are given greater role in the economy since they have to ensure the capital usage must fulfill the economic objectives of syari'ah: profitable as well as halal. Jabatan Ekonomi Awam & Kewangan, Fakulti Ekonomi, Universiti Utara Malaysia 2005-08 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/62824/1/62824_Towards%20the%20Expediency%20and%20Leniency.pdf Ariffin, Muhammad Irwan (2005) Towards the expediency and leniency of Islamic finance through Islamic micro credit financing. In: Seminar Ekonomi dan Kewangan Islam (SEKI'05), 29th-30th Aug. 2015, ESSET Bangi, Selangor.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance HG3691 Credit
spellingShingle	HG3368 Islamic Banking and Finance HG3691 Credit Ariffin, Muhammad Irwan Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
description	This paper is intended to study the opportunities available for Islamic banks to explore the micro credit financing in Malaysia. The effectiveness of micro credit financing, as a tool to eradicate poverty, is factual since many countries that practice the scheme are able to provide the poor with income-generating jobs. In Malaysia, despite the rapid development in the banking sector, little progress is seen in Islamic micro credit financing. Islamic micro credit financing is an effective tool to link between Islamic banks and the poor. This will enhance the moral features that have been lacking in Islamic banking and finance all these years. The lack of research and development in the Islamic banking and financial products; together with high transaction costs, moral hazard and deficient securities with small units contributed to the unwillingness of Islamic banks to explore micro credit financing area. Al-Mudharabah and al-musharkaah contracts are the most suitable mode to be used in Islamic micro credit financing since the interest of both parties are protected. The Islamic banks need to optimize their resources toward helping the poor to gain profit in their business, and they are given greater role in the economy since they have to ensure the capital usage must fulfill the economic objectives of syari'ah: profitable as well as halal.
format	Conference or Workshop Item
author	Ariffin, Muhammad Irwan
author_facet	Ariffin, Muhammad Irwan
author_sort	Ariffin, Muhammad Irwan
title	Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
title_short	Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
title_full	Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
title_fullStr	Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
title_full_unstemmed	Towards the expediency and leniency of Islamic finance through Islamic micro credit financing
title_sort	towards the expediency and leniency of islamic finance through islamic micro credit financing
publisher	Jabatan Ekonomi Awam & Kewangan, Fakulti Ekonomi, Universiti Utara Malaysia
publishDate	2005
url	http://irep.iium.edu.my/62824/ http://irep.iium.edu.my/62824/1/62824_Towards%20the%20Expediency%20and%20Leniency.pdf
first_indexed	2023-09-18T21:29:01Z
last_indexed	2023-09-18T21:29:01Z
_version_	1777412385199357952

Towards the expediency and leniency of Islamic finance through Islamic micro credit financing

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