Microfinance

Academic and Practioners invited to share documents

Dear Writers,

Whether you are an academic or practionner: If you wish to see your paper published on IslamicFinance.de please send us the relevant document along with a confirmation that you hold the copyrights of it and we can upload the work with your abstract provided.

As simple as that!

Best regards,

Michael Saleh Gassner

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Talk on Islamic finance, money, and banking crisis in Zurich and online

As salamu Alaikum,
Next saturday, May 13, 2023, at 15.00 I present as guest of Muslim Student Association in Zurich (@msazurich) on the 1st chapter of my book and then go into the banking crisis and money creation. The talk is in English.

Physical
???? Samstag, 13. Mai 2023
? 15:00 - 17:00
???? Building KAB, floor G, room 01
????? Kantonsschulstrasse 3, 8001 Zürich

Physical attendance - registration linked at @msazurich and in my link tree in Insta profile. (just confirm lengthy privacy in German).
Talk online accessible without registration: Click on Linktr.ee/islamgeldwohlstand - presentation on bigbluebutton/senfcall similar to zoom - no installation required or instagram @islamgeldwohlstand

My German book "Islam, Geld und Wohlstand - Ein Handbuch über Finanzen und Vorsorge" can be obtained:
Instagram:
DE: @islambooks24
CH: @IslamShop.ch
or any other bookstore or online dealer in German speaking countries - if you are publisher interested for your country, please contact me.

MICROFINANCE PAPER WRAP-UP: “Analysis of the Strategy of #Microfinance for Financial Inclusion of Refugees,” published by the European Microfinance Network

Turkey is host to an estimated 4 million refugees, more than are living in any other country. This paper assesses “the feasibility of microfinance as an appropriate strategy for the financial inclusion of refugees in Turkey.” The authors identify some of the risks of lending to refugee populations and steps that can be taken to mitigate them. Borrowed funds may be used for unapproved purposes such as to repay other debts. This may be mitigated by visiting the borrower’s place of work to assess how the credit is to be used. Excluding local residents from lending programs can create resentment. This may be mitigated by issuing loans to groups whose members span both the local and refugee populations. Refugees may move away, making recovery of loan repayments more challenging. This can be mitigated by assessing a loan applicant’s level of integration into the local community.

ACCA hosts Dr Amjad, founder of Islamic micro finance

Dr Muhammad Amjad Saqib, the founder of the Islamic micro finance company, Akhuwat, met with Alan Hatfield, executive director for strategy and development at ACCA London headquarters. In Pakistan, micro finance is proving popular amongst the growing SME sector. The country’s SME development authority calculates that nearly 90% of companies are SMEs, most of them operating in the informal sector, so the demand for micro finance is also growing. Akhuwat has opened over 850 branches in 486 cities/towns across Pakistan, enabling over 3.5 Million families to become self-reliant by extending interest-free loans worth more than £400 million. Dr Saqib's latest initiative is called Akhuwat University, which will provide higher education without any tuition fee to support the upward social mobility in the country.

MICROCAPITAL BRIEF: Blossom Finance Launches Shariah-compliant #Microfinance #Fund to Invest in BMT Microfinance Institutions in #Indonesia via PBMT Ventura

US-based Blossom Finance recently launched a fund that will lend local-currency on the Indonesian island of Java via Permodalan BMT (PBMT) Ventura. Baitul Maal wat Tamwil (BMTs) are financial institutions that follow Shariah law. They provide savings and loan services primarily to people who do not use traditional banks. The new fund is Blossom’s first microfinance fund that is open to investment from the public. The minimum investment is USD 1,000, although US-based investors must be accredited before participation. Blossom is accepting investments into the fund in US dollars as well as the cryptocurrencies Bitcoin, Bitcoin Cash and Ethereum. In testing its platform since 2015, Blossom has generally returned investors annualized profits around 7% with terms of 6 to 12 months.

Cryptocurrency Infused Islamic #Microfinance Fund Launches in Central Java

Blossom Finance announced the open enrollment for an Islamic microfinance fund that will accept multiple cryptocurrencies. Investors will focus on socially responsible opportunities and receive profit sharing from Blossom’s network of microfinance partners in the province of Central Java, Indonesia. Blossom has partnered with PBMT Ventura, an Indonesian Islamic microfinance firm. The funds raised will be utilized to bolster micro-businesses and traditional market sellers to meet the increased demand during the upcoming Ramadan holiday. In order to participate, investors will have the option to invest with Bitcoin Core (BTC), Bitcoin Cash (BCH), Ethereum (ETH) or USD.

Ebdaa Bank backs #microfinance proposal for GCC charity projects

Ebdaa Bank has agreed to a proposal to microfinance charity projects to achieve their objectives to support low-income families. Ebdaa Bank CEO Dr Waleed Al Ghazawi welcomed officials from Almajdouie Group and stressed the need for the GCC to adopt microfinance due to its benefit for charity donations. The Almajdouie Group is visiting Bahrain to share ideas about their sustainable charity projects. The group’s new project is called "Basta", which has already launched six booths in Saudi Arabia, distributed in Dammam and Al Khobar. The project aims to support kiosks to develop their projects.

Jaiz Bank, others secure $50m for #SMEs financing

Jaiz Bank, Wema Bank and SunTrust Bank signed a Memorandum of Understanding (MoU) and secured $50 million from the Islamic Corporation for the Development of the Private Sector (ICD) for lending to SMEs. Under the terms of the MOU, SunTrust bank will get a financing of $10 million for lending purposes, Jaiz bank $20 million and Wema bank $20 million. Jaiz bank Managing Director Hassan Usman expressed his optimism about disbursement of the fund and said the bank has been supporting SMEs since it was created five years ago. According to Segun Oloketuyi, the Managing Director of Wema Bank, the funds will help bolster the Bank’s vision of building a sustainable retail sector by supporting micro, small and medium scale enterprises.

The Islamic Corporation for the Development of the Private Sector (ICD) Signs Memorandum of Understanding with JANA to Test New Banking Model

The Islamic Corporation for the Development of the Private Sector (ICD) signed a Memorandum of Understanding (MoU) with JANA Bena'a Productive Families of Saudi Arabia in order to test a new banking model named Biniog Sathi. The MOU was singed by Khaled Al-Aboodi, the CEO of ICD and Mohammed Al Khamis, Chairman of JANA Bena'a Productive Families. The new banking model will resolve the problem of credit default in the banking industry with the help of Zakat and Sadaqa. JANA Bena'a Productive Families Centre provides interest free loans to support women in starting their own businesses.

FINTQ to digitize Islamic #microfinance in Southern #Philippines

At the 7th Global Islamic Microfinance Summit, FINTQ Managing Director Lito Villanueva noted that there is a need to push for an enabling framework for Islamic microfinance in the Philippines. In the Philippines around 5.6% of the population are practicing Islam, with a geographic concentration in the Autonomous Region in Muslim Mindanao (ARMM). Villanueva says despite its resource-rich landscape, ARMM remains largely underdeveloped with less than 70% of the adult population either unbanked or underserved. There are only 20 banks and 28 ATMs servicing almost 4 million ARMM residents. Not a single bank there is Shari'ah compliant. For its part FINTQ launched a national initiative called KasamaKA, which provides greater access to financial services, such as micro savings via agent banking, lending, micro insurance, remittances, micro investments and payments to every Filipino via a bottom-up approach.

ICD and BSIC Niger cooperate to finance SMEs in #Niger

The Islamic Corporation for the Development of the Private Sector (ICD) and BSIC Niger have entered into an agreement to finance SMEs in Niger. The line of financing agreement was signed for the amount of €9m under the Wakala structure. The collaboration will focus on developing SMEs, improving the living standard of the population by creating jobs, generating tax revenues for the government and promoting Islamic Banking in the country. Abakar Adoum, Managing Director of BSIC, said the signing of the agreement marked the beginning of a lasting partnership and SMEs will enjoy a mentoring that meets their needs at acceptable costs. SME clients will get access to a a 5-year line of financing. Adoum believes that other forms of partnership, like the opening of an Islamic window, will also develop in the near future.

Responsible Investing: Shariah-compliant #microfinance investment fund eyeing Asean opportunities

Investing in microfinance institutions (MFIs) has become increasingly popular in the last decade. According to a 2016 report, microfinance investment vehicles (MIVs) have seen capital inflows of US$1.1 billion per year since 2006. The market size at end-2015 was US$11 billion, a fivefold increase from US$2.1 billion in 2006. While MIVs usually target countries in Eastern Europe, Central Asia, Latin America and the Caribbean, the report points out that Asia has witnessed the largest growth in this respect. Matthew Martin, founder of microfinance investment fund Blossom Finance, points out that microfinance can better serve the needs of communities than the top-down, one-size-fits-all model of retail banking. The fund is currently limited to US accredited investors due to legal issues, but Martin hopes to open it up to other investors too. Blossom Finance only invests in shariah-compliant MFIs specifically focused on Indonesia.

Financial inclusion through Islamic #microfinance

According to statistics from the World Bank, an estimated two billion adults worldwide do not have access to basic financial services. Realising this fact, the World Bank has partnered with public and private sector institutions and established the Universal Financial Access by 2020 (UFA2020) initiative to promote financial inclusion. As the main aim of the microfinance industry is to alleviate poverty, Islamic microfinance is a branch of that with Islamic financial principles. In Cambodia the Islamic microfinance industry is still in the nascent stage. Recently, the Cambodian government has opened its doors to two Islamic microfinance institutions into Cambodia namely Amanah Ikhtiar Malaysia (AIM) and Yayasan Pembangunan Ekonomi Islam Malaysia (YAPEIM). AIM is currently setting up its branch office in Cambodia while YAPEIM is slated to come in by the first quarter of 2018.

Islamic #cooperatives can help alleviate poverty

According to the Central Statistics Agency, Indonesia’s poverty rate is at 10.70% as of the second half of 2016. The rapid growth of Islamic finance presents an opportunity to address the social and economic gap. However, behind the success of Islamic finance is the reality that this development is diverting from the fundamental goal of Islamic law. Mehmet Asutay, a professor in Islamic finance at Durham University, argues that the development of Islamic financial institutions have neglected Islamic social goals. The Baitul Maal wat Tamwil (BMT) can be one solution in empowering the poor. As a microfinance institution, the BMT may provide better outreach as it is more accessible to the poorest people. The small amount of credit may encourage them to engage in financing activity. BMT lacks formalization and supervision, the government is expected to strengthen Islamic microfinance by linking BMT to robust capital injectors.

IDP and JCSB partner to grow #SME businesses

The Islamic Corporation for the Development of the Private Sector (ICD) and JSCB Microkreditbank Uzbekistan have entered into a Joint Strategic Collaboration to finance SMEs in Uzbekistan. The Line of Financing facility agreement for the amount of USD 12 million was signed by the CEO of ICD, Khaled Al-Aboodi and the Acting Chairman of JSCB Microkreditbank, Shukhrat Rasulov. The collaboration will focus on developing the private sector especially SMEs, improving the living standard, generating tax revenues for the government and promoting Islamic Banking in the country. Khalid Al-Aboodi stated that ICD was pleased to extend a line of financing facility to Microkreditbank which will enhance the impact of socio-economic development. Shukhrat Rasulov welcomed the partnership with ICD and ensured that JSCB was committed to providing professional banking services while promoting private entrepreneurship in the Republic of Uzbekistan.

Egyptian central bank to launch a #microfinance initiative next Tuesday

Egypt’s central bank is launching its anticipated microfinance initiative to support the country’s small and medium-sized businesses. According to the new initiative, the banks will not be obliged to establish a special unit for microfinancing; as they can provide both direct and indirect lending to clients. The Central Bank of Egypt (CBE) plans to allocate 20 billion Egyptian pounds ($1.2 billion) for the microfinancing activities in the country. CBE deputy governor Gamal Negm announced earlier that the central bank is preparing the ground to launch an initiative dedicated for the microfinance sector before the end of this month.

$100m fund launched in #Bahrain to help #SMEs growth

A $100 million fund has been launched in Bahrain to invest in the country's small and medium-sized enterprises (SMEs). The initiative has been unveiled by the Islamic Corporation for the Development of the Private Sector (ICD) in partnership with Ibdar Bank and Labour Fund Tamkeen. The Bahrain SME Fund is a Shariah compliant mezzanine private equity fund which will target SMEs with high growth potential in consumer, industrial, ICT, education and healthcare sectors. Khalid Al Aboudi, CEO of the ICD, said that SME support is at the centre of ICD’s strategy as they seek to facilitate further prosperity in Islamic countries. Ahmed Al-Rayes, CIO of Ibdar Bank, added that the creation of this fund is aligned with the Bank’s mission to support Bahrain’s economic diversification through private sector growth.

RHB Islamic To Disburse RM50 Million For #Entrepreneurs

RHB Islamic Bank is expecting to disburse at least RM50 million this year to facilitate the development of entrepreneurs. The fund is part of the Teras Fund programme provided via the Bumiputera Agenda Steering Unit (Teraju). According to RHB Islamic Bank's CEO Datuk Adissadikin Ali, the collaboration with Teraju had so far disbursed RM200 million as of 2016 from the total fund raised of RM400 million. He said the original fund for the programme was RM80 million, but RHB Islamic managed to raise the fund by leveraging on resources to RM400 million.

Al Rayan Bank & Islamic Relief partner to support Sharia-compliant #microfinance

Al Rayan Bank has appointed Islamic Relief as its exclusive charity partner for 2017. The bank will work with Islamic Relief by supporting Sharia-compliant microfinance projects through fundraising activities. The projects will help people living in poverty to establish social enterprise businesses in their home countries and become financially independent. One of the projects is in Mali, West Africa. The project helps local women by making money available using the Islamic finance principle of Qard Hasan (loan without benefit). The women are then able to use the money to commercially harvest the nut of the African Shea tree and create Shea Butter, which they can then use to make various products. Seema Khan, head of major gifts at Islamic Relief UK, said the microfinance partnership with Al Rayan Bank is an intelligent solution to helping people around the world out of poverty.

#Zurich: #Responsible #Finance & Investment Summit 3-4 May 2017

Summit will explore intersection of #fintech, #ESG and #Islamicfinance. #RFISummit17

January 24, 2017, Zurich, Switzerland –

Bringing together a diversity of perspectives is critical for continuing the growth occurring within responsible finance. On this premise, the Responsible Finance & Investment Summit 2017 will convene in Zurich, Switzerland from 3-4 May 2017 around the theme “Building Bridges, Expanding Impact”.

Recent estimates from industry stakeholders show continued growth in responsible finance assets in many geographies and sectors. Responsible investment in Europe grew by 42% during the past 2 years, while in the U.S., assets grew by 33%. In Islamic finance, which has a global presence with a significant presence in Europe, the Middle East and Asia, growth in the last 2 years has been 21%. Identifying actionable areas for collaboration will support continued growth towards a more sustainable financial system.

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