Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia

Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conven...

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Main Authors:	Mohd Thas Thaker, Mohamed Asmy, Mohd Thas Thaker, Hasanudin
Format:	Conference or Workshop Item
Language:	English English
Published:	2014
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/39841/ http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf http://irep.iium.edu.my/39841/2/ConferSchedule.pdf

id	iium-39841
recordtype	eprints
spelling	iium-398412018-06-13T07:18:21Z http://irep.iium.edu.my/39841/ Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin HG Finance Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conventional microfinance is less effective, fail to reach the poorest people and generally have a limited effect on income. In addition, conventional microfinance also has highly criticized for charging excessive interest rates and fees to the poor entrepreneur. In some Muslim countries, conventional microfinance has always been rejected, due to its noncompliance with the Islamic principles, particularly on the issue related to interest or riba. Islamic microfinance evolved and reckoned as an alternative to its counterpart. However, the outreach of Islamic microfinance is very limited where only there is very few Islamic microfinance institutions and Islamic banks involved in microfinance activity. Also, Islamic microfinance is having an issue of convergence of activity with the conventional practices. Thus, this paper aims to propose to adopt Zero Interest Financing Model (ZIFM) for Islamic microfinance institutions. This study focuses on the case of Indonesian Islamic microfinance institution namely Shariah People Credit Bank (BPRS) by observing their experience and some emerging issues. The proposed model is expected to address an emerging issue in Islamic microfinance institutions. 2014-06-02 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf application/pdf en http://irep.iium.edu.my/39841/2/ConferSchedule.pdf Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hasanudin (2014) Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia. In: PSU-USM-NSTRU International Conference on Arts and Sciences 2014, 2nd - 3rd June 2014, Songkla, Thailand. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
description	Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conventional microfinance is less effective, fail to reach the poorest people and generally have a limited effect on income. In addition, conventional microfinance also has highly criticized for charging excessive interest rates and fees to the poor entrepreneur. In some Muslim countries, conventional microfinance has always been rejected, due to its noncompliance with the Islamic principles, particularly on the issue related to interest or riba. Islamic microfinance evolved and reckoned as an alternative to its counterpart. However, the outreach of Islamic microfinance is very limited where only there is very few Islamic microfinance institutions and Islamic banks involved in microfinance activity. Also, Islamic microfinance is having an issue of convergence of activity with the conventional practices. Thus, this paper aims to propose to adopt Zero Interest Financing Model (ZIFM) for Islamic microfinance institutions. This study focuses on the case of Indonesian Islamic microfinance institution namely Shariah People Credit Bank (BPRS) by observing their experience and some emerging issues. The proposed model is expected to address an emerging issue in Islamic microfinance institutions.
format	Conference or Workshop Item
author	Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin
author_facet	Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin
author_sort	Mohd Thas Thaker, Mohamed Asmy
title	Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
title_short	Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
title_full	Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
title_fullStr	Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
title_full_unstemmed	Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
title_sort	adopting zero interest financing model (zifm) in islamic microfinance institutions: the case of shariah people credit bank (bprs), indonesia
publishDate	2014
url	http://irep.iium.edu.my/39841/ http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf http://irep.iium.edu.my/39841/2/ConferSchedule.pdf
first_indexed	2023-09-18T20:57:12Z
last_indexed	2023-09-18T20:57:12Z
_version_	1777410383091335168

Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia

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