Islamic finance, financial inclusion policy and financial inclusion : evidence from Muslim countries
Author
Source
Islamic Research and Training Institute
Issue
Vol. 2016, Issue 1-3, 9-12, 14 (31 Dec. 2016), pp.1-41, 41 p.
Publisher
Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)
Publication Date
2016-12-31
Country of Publication
Saudi Arabia
No. of Pages
41
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic banks
- Islamic finance
- Islamic World
- Indonesia
- Fiscal policy(Islamic law)
- Nigeria
- Financial services(Islamic law)
- Islamic financial markets
- Financial inclusion(Islamic law)
Abstract EN
This paper examines the interlinkage between financial inclusion and the Islamic financial services industry in Muslim countries using qualitative analysis and case study.
The finding shows that despite financial sector growth in many Muslim countries over the past decades, many individuals and firms are still financially excluded.
Analysis of the usage of and access to financial services by adults and firms also shows that most Muslim countries lag behind other emerging economies in both aspects, with only 27 percent of financial inclusion.
Cost, distance, documentation, trust and religious beliefs are among important obstacles.
On the other hand, not surprisingly, the outreach of Islamic microfinance is very limited, small by international standards, and of a limited coverage, which accounts for a small fraction of microfinance supply, about 0.5 percent of global microfinance and lack of cost-efficient service model.
However, the study suggests that Islamic distributive instruments such as zakah, sadaqa, awqaf, and qard-alhassan, can play a role in bringing more than 40 million financially excluded populations due to religious reasons into the formal financial system.
However, it is still a long way for the Islamic financial services industry to be able to improve financial inclusion in many Muslim countries due scale and relatively weak infrastructure.
American Psychological Association (APA)
Zulkhibri, Muhammad. 2016. Islamic finance, financial inclusion policy and financial inclusion : evidence from Muslim countries. Islamic Research and Training Institute،Vol. 2016, no. 1-3, 9-12, 14, pp.1-41.
https://search.emarefa.net/detail/BIM-719423
Modern Language Association (MLA)
Zulkhibri, Muhammad. Islamic finance, financial inclusion policy and financial inclusion : evidence from Muslim countries. Islamic Research and Training Institute No. 1-3, 9-12, 14 (2016), pp.1-41.
https://search.emarefa.net/detail/BIM-719423
American Medical Association (AMA)
Zulkhibri, Muhammad. Islamic finance, financial inclusion policy and financial inclusion : evidence from Muslim countries. Islamic Research and Training Institute. 2016. Vol. 2016, no. 1-3, 9-12, 14, pp.1-41.
https://search.emarefa.net/detail/BIM-719423
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 36-41
Record ID
BIM-719423