This case study from the University of Torino provides a good followup to our earlier posts on Islamic Microfinance and Sustainable Development. In particular, the author explores how both Islamic finance and Microfinance have developed and traces their convergence due to their shared aims. This "evolution" is a theme which we are encountering time and again. The paper goes on to state that:"Even if they both constitute fairly new trends in the financial environment, the inclusion of Islamic finance and microfinance in the activities of the traditional banking system evolved in a quite similar way, because they both started from a marginal position and managed to reach a growing popularity."
Chiara Segrado
MEDA PROJECT
University of Torino, Italy
MEDA PROJECT
University of Torino, Italy
Also highlighted are two case studies which use a mudaraba and murabaha financing respectively:
A murabaha model example: Hodeidah Microfinance Programme, Yemen
An interesting case: the Mali-North Program of the German cooperation
The paper concludes with an outline for further industry developments:
- Inclusion
- Tailoring
- Diversification
- Social Outcomes
- Specialization
- Effectiveness
In addition, for a wider library of content relating to microcredit and microfinance, visit the online library of the Global Development Research Centre. Also please check the Microfinance Network of Arab Countries (Sanabel Network). Much more coming soon.
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