scholarly journals Rural Finance in Contemporary Times: Interface with Microfinance

2005 ◽  
Vol 30 (2) ◽  
pp. 81-112 ◽  
Author(s):  
N S Sisodia ◽  
M B N Rao ◽  
Vijay Mahajan ◽  
V Leeladhar ◽  
M P Vasimalai ◽  
...  
Keyword(s):  
Interest Rates ◽  
Financial Services ◽  
Banking System ◽  
The State ◽  
Microfinance Institutions ◽  
Rural Finance ◽  
The Poor ◽  
Role Of The State ◽  
Financial Exclusion

In India, when we talk about rural finance, the stereotype offered is that of a banking system that fails to reach out to the poorer clients and, when it does, fails to recover the money so disbursed. The counter-point offered is usually the magic wand of microfinance. This Colloquium was an interface between leading bankers and microfinance practitioners in India to examine where these two worlds meet and how they could learn from each other. The discussions were organized around three themes: a) the legacy of the banking system, b) the limitations of microfinance, and c) an assessment of the potential. On the issue of legacy, the message was clear that the intervention of the state in certain aspects has been undesirable. These areas were clearly identified as granting general pardon for loans, tinkering around with interest subsidies, and interfering with the commercial aspects of banking. The limitations of the microfinance institutions were in terms of their sustainability and their inability to draw commercial capital and grow rapidly. However, these limitations were partly seen as a consequence of regulatory apathy and support from the state both in terms of formulating and articulating a regulatory framework and also in terms of the central bank being reluctant to supervise the efforts. These did not help in enhancing the legitimacy of microfinance institutions. The participants saw a great potential in the rural markets which were beyond agriculture. The emerging sectors were identified as construction, non-farm enterprise, handloom, clusters that involve garment making and quarrying, etc. According to them, there was scope for both the banks and the microfinance institutions to intervene. The following points emerged from the discussion: Rural finance has suffered from interventions from the state in the past. While some interventions have been positive, they have harmed the sector when compromises such as write-offs have been made. Microfinance has emerged as an important mechanism to reach out financial services to the poor. There are interesting lessons from this for the banks to adopt. There are problems for the microfinance institutions in the form of regulatory and supervisory apathy. This leads to financial exclusion of large segments of the poor. There is a huge market for financial services — both loans and savings. Innovations across the world indicate important breakthroughs in delivery of financial services. These can be implemented provided the regulatory impediments are removed. The issue of risk management has to be systematically addressed. The role of the state, wherever positive, has been effective and, therefore, this should be sharply defined to see how the state could contribute to this sector. The issue of interest rates continues to be vexatious and needs to be addressed urgently.

scholarly journals Analisis Peran Negara Di Bidang Ekonomi Dalam Prespektif Sistem Kapitalisme, Sosialisme, Dan Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Muhammad Kambali
Keyword(s):  
Interest Rates ◽  
Conceptual Framework ◽  
Economic System ◽  
Economic Crisis ◽  
The State ◽  
Planning System ◽  
Role Of The State ◽  
The World ◽  
Low Interest Rates

The economic crisis that convolved the world economy a few years ago is the result of a series of government policies in the economic field. Starting from the Subprime Mortgage in America, the crisis eventually spreads across all sectors of the economy. As analysts say that the explosion of the current economic crisis is caused by the trend of low interest rates that are applied by the Fed. The trend of low interest rates will give rise to expectation of market to future economic situation. It is characterized by the overflow of capital expansion in all sectors, especially in property sector. Today, along with the growing mobility of capital from one country to another as part of unavoidable economic liberalization, mobility of capital, on the one hand, has spawned some of the imbalances in the life of a State. The powerlessness can not be separated from economic ideology and system on state role in the economy. Capitalism with its laissez faire brings the concept of state minimal role in the economy. In the empirical facts, it is broken by the crisis situation in 1930 and today's financial crisis. Socialism tends to carry the central role of the State in the economy through the centralistic planning system. The fall of the Soviet Union in the 1980s brought the world to a choice whether reconstructing capitalism or socialism as Fukuyama and Gidden said. On the other hand, as the new system, the economic system of Islam brings the concept of the role of the State in the economy on the basis of universal values of Islam, such as justice in the economy which is reflected in the mechanism of the prohibition of riba (usury), just income distribution and redistribution of income through zakat and social security. This article is an exposure of the State's role in the economy which is studied through the perspective of today’s economic system. The systems are capitalism, socialism, and Islam. The article not only explores conceptual framework, but also also contains an empirical framework mapping and how the conceptual framework is operated. At the end, from the two mapping (conceptual and empirical), author draws a reflection of how the State should play a role in the economic field. Keywords: Capitalism, Socialism, Islam, Economic Role of State

Mobile Financial Services

2020 ◽  
pp. 96-119
Author(s):  
Alexander Maina Kimari ◽  
Eric Blanco Niyitunga
Keyword(s):  
Financial Services ◽  
Developing World ◽  
Service Providers ◽  
Customer Experience ◽  
Financial Service ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Mobile Financial Services

The chapter explores financial exclusion, its causes, and consequences in society. The chapter found that the existing discrepancy in financial inclusion between the developed and developing world is driven by financial exclusion that makes it difficult for financial service providers to expand outreach to the poor at affordable prices. The chapter aims to investigate the role of mobile financial service design and development in dealing with financial exclusion. It was found that mobile financial services are promoting financial inclusion in various markets. However, few studies have been undertaken on the benefits of mobile financial services in dealing with the high rates of financial exclusion. The chapter recommended that to achieve financial inclusion, there is need for mobile financial services providers to take into account customer experience through the ease of using the phone interface. The chapter concluded that there is need for scholars in the fields of finance and economics to conduct research in the areas of mobile financial services and their role in society.

Analisis Peran Negara Di Bidang Ekonomi Dalam Prespektif Sistem Kapitalisme, Sosialisme, Dan Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
pp. 16-35
Author(s):  
Muhammad Kambali
Keyword(s):  
Interest Rates ◽  
Conceptual Framework ◽  
Economic System ◽  
Economic Crisis ◽  
The State ◽  
Planning System ◽  
Role Of The State ◽  
The World ◽  
Low Interest Rates

The economic crisis that convolved the world economy a few years ago is the result of a series of government policies in the economic field. Starting from the Subprime Mortgage in America, the crisis eventually spreads across all sectors of the economy. As analysts say that the explosion of the current economic crisis is caused by the trend of low interest rates that are applied by the Fed. The trend of low interest rates will give rise to expectation of market to future economic situation. It is characterized by the overflow of capital expansion in all sectors, especially in property sector. Today, along with the growing mobility of capital from one country to another as part of unavoidable economic liberalization, mobility of capital, on the one hand, has spawned some of the imbalances in the life of a State. The powerlessness can not be separated from economic ideology and system on state role in the economy. Capitalism with its laissez faire brings the concept of state minimal role in the economy. In the empirical facts, it is broken by the crisis situation in 1930 and today's financial crisis. Socialism tends to carry the central role of the State in the economy through the centralistic planning system. The fall of the Soviet Union in the 1980s brought the world to a choice whether reconstructing capitalism or socialism as Fukuyama and Gidden said. On the other hand, as the new system, the economic system of Islam brings the concept of the role of the State in the economy on the basis of universal values ​​of Islam, such as justice in the economy which is reflected in the mechanism of the prohibition of riba (usury), just income distribution and redistribution of income through zakat and social security. This article is an exposure of the State's role in the economy which is studied through the perspective of today’s economic system. The systems are capitalism, socialism, and Islam. The article not only explores conceptual framework, but also also contains an empirical framework mapping and how the conceptual framework is operated. At the end, from the two mapping (conceptual and empirical), author draws a reflection of how the State should play a role in the economic field.

Exploring the Role of Microfinance in Emerging Nations

2021 ◽  
pp. 249-268
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Health Care ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial Resources ◽  
Rural Poor ◽  
Microfinance Institutions ◽  
Emerging Nations ◽  
Poor Households

This chapter explains the overview of microfinance; the efficiency of microfinance institutions (MFIs) and sustainability; microfinance and interest rates; microfinance and information technology (IT); microfinance, social capital, trust, and repayment rates; microfinance and health care; informal microfinance institutions (IMFIs) and tourism entrepreneurship; and the importance of microfinance in emerging nations. Financial services provide a method for people and businesses to obtain credit and manage available assets on a continuous basis. Microfinance has a significant role in bridging the gap between formal financial institutions and rural poor households. MFIs can access financial resources from banks and other financial institutions and provide financial services to poor households. The chapter argues that promoting microfinance has the potential to enhance financial performance and reach economic goals in emerging nations.

scholarly journals Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa

2020 ◽  
Vol 64 (3) ◽  
pp. 337-355
Author(s):  
Howard Chitimira ◽  
Menelisi Ncube
Keyword(s):  
South Africa ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Relevant Role ◽  
Legislative Framework ◽  
The Government

AbstractThis article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation and poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. Given these flaws, the article highlights the need for the government, financial institutions and other relevant stakeholders to adopt legislative and other measures as an antidote to financial exclusion and poverty challenges affecting the poor and low-income earners in South Africa.

scholarly journals Distributive principles of economic justice: an Islamic perspective

2012 ◽  
Vol 2 (2) ◽  
pp. 241
Author(s):  
Zakiyuddin Baedhawy
Keyword(s):  
Decision Making ◽  
Distributive Justice ◽  
Economic Justice ◽  
The State ◽  
Public Welfare ◽  
Induction Method ◽  
The Poor ◽  
Role Of The State ◽  
The World

Poverty and impoverishment in the world currently continue to increase as aresult of distributive justice systems and its principles that became the basis ofcontemporary economics did not succeed in allocating and distributing resourcesjustly. Based on this problem, this study aimed at describing the Islamic responseto the problem of distributive injustice, and how necessarily the state played arole in upholding distributive justice. Through the thematic-induction method andthe synthetic analysis, the study finds out several findings as follows. Firstly,Islam formulated three principles of distributive justice as follows: 1) the Distributionof natural and the environmental resources was in the framework of participation;2) the Redistribution of the wealth and the income were joint responsibilityof ascertaining social security, the increase in the capacity and the authorityfor them who were disadvantage; and 3) the Role of the state was certaintythat was complementary for the ethical market in order to guarantees the senseof justice and the achievement of public welfare. Secondly, according to Islam,the process of the redistribution of the wealth and the income aimed at givingsocial security on the fulfillment of basic needs for the poor; strove for the increasein the capacity through education and skills; and increased the poor’sbargaining position through their participation in decision making that was linkedwith their interests and the control on its implementation. Thirdly, the intention of establishing justice was to gain both individual and public welfare and the happiness(al-fala>h}).Kemiskinan dan pemiskinan di dunia kontemporer terus meningkat sebagai akibatsistem keadilan distributif dan prinsip-prinsipnya yang menjadi basis ekonomisaat ini tidak berhasil dalam mengalokasikan dan memeratakan sumber dayasecara adil. Berdasarkan masalah ini, kajian ini bertujuan untuk menjelaskanrespon Islam atas problem ketidakadilan distributif, dan bagaimana seharusnyanegara ambil peranan dalam menegakkan keadilan distributif. Melalui metodeinduksi-tematik dan analisis sintetik, kajian ini menemukan beberapa hal pentingantara lain. Pertama, Islam telah merumuskan tiga prinsip keadilan distributifsebagai berikut: 1) pemerataan sumber daya alam dan lingkungan dalamkerangka partisipasi; 2) redistribusi kekayaan dan pendapatan dalam rangkamemastikan keamanan sosial, dan meningkatkan kapasitas dan otoritas bagimereka yang kurang/tidak beruntung; dan 3) peran negara merupakan pelengkapbagi pasar yang etis dengan maksud untuk menjamin rasa keadilan dantercapainya kesejahteraan publik. Kedua, menurut Islam, proses redistribusikekayaan dan pendapatan bertujuan untuk memberikan jaminan sosial bagipemenuhan kebutuhan orang miskin; untuk meningkatkan kapasitas merekamelalui pendidikan dan pelatihan; dan meningkatkan posisi tawar kaum miskinmelalui partisipasi dalam pengambilan keputusan yang berkaitan langsung dengankepentingan mereka, serta kendali atas pelaksanaan keputusan tersebut. Ketiga,maksud penegakkan keadilan ialah untuk mewujudkan kesejahteraan sekaliguskebahagiaan individu dan publik.

scholarly journals Stochastic model of microcredit interest rate in Morocco

2016 ◽  
Vol 6 (4) ◽  
pp. 268-273 ◽  
Author(s):  
Ghita Bennouna ◽  
Mohamed Tkiouat
Keyword(s):  
Interest Rate ◽  
Stochastic Model ◽  
Interest Rates ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Well Being ◽  
Microfinance Institutions ◽  
Social Mission ◽  
The Interest Rate

Access to microcredit can have a beneficial effect on the well-being of low-income households excluded from the traditional banking system. It allows this population to receive affordable financial services to help them to meet their needs and to improve their living conditions. However to provide access to credit, microfinance institutions should ensure not only their social mission but also commercial and financial mission to enable the institution to perpetuate and become self-sufficient. To this end, MFIs (microfinance institutions) must apply an interest rate that covers their costs and risk, while generating profits, Also microentrepreneurs need, to this end, to ensure the profitability of their activities. This paper presents the microfinance sector in Morocco. It focuses then on the interest rate applied by the Moroccan microfinance institutions; it provides also a comparative study between Morocco and other comparable countries in terms of interest rates charged to borrowers. Finally, this article presents a stochastic model of the interest rate in microcredit built in random loan repayment periods and on a real example of the program of loans of microfinance institution in Morocco.

Shipbuilding and the State in Japan since the 1850s

1977 ◽  
Vol 11 (4) ◽  
pp. 601-613 ◽  
Author(s):  
Seymour Broadbridge
Keyword(s):  
Economic Development ◽  
Significant Role ◽  
Economic History ◽  
Private Enterprise ◽  
Banking System ◽  
The State ◽  
The Past ◽  
Role Of The State ◽  
The Government

In the past decade or so there have been several critical revisions of the long-accepted view of the important role of the state in Japan's economic development and programme of modernization generally. Professor Harry Oshima has attempted to demolish the argument that the Meiji governments' policies were at all economically beneficial. On the contrary, he has said, those policies retarded growth, particularly through their neglect of agriculture. Professor Hugh Patrick has cautioned us against giving the Meiji governments too much credit for the development of the banking system. Private enterprise, he has insisted, was also important. Most recently, Professor Kozo Yamamura has delivered yet another broadside against what he considers the myths of Japanese economic history. This time he criticizes the view that the government, by intervening and pioneering model plants, played a significant role in Meiji Japan's industrial dcvelopment.

scholarly journals The advent of Islamic microfinance in Senegal

2019 ◽  
Vol 7 (3) ◽  
pp. 246-256 ◽  
Author(s):  
Massamba Souleymane SECK ◽  
Abdoulaye BIAYE
Keyword(s):  
Financial Institutions ◽  
Vulnerable Populations ◽  
Financial System ◽  
The State ◽  
Microfinance Institutions ◽  
Access To Credit ◽  
Funding Model ◽  
Role Of The State ◽  
Islamic Microfinance

In Senegal, as elsewhere in the WAEMU zone, access to credit for vulnerable micro entrepreneurs is a major concern despite the important role of traditional microfinance institutions. To effectively solve this problem, Islamic microfinance has been identified as an alternative offer, alongside conventional finance in order to give access to bank accounts to those underprivileged people that have not been sufficiently served by financial institutions. Thus, this article aims to study the advent of Islamic microfinance in Senegal. To do this, our research focuses on the history and role of the State of Senegal in the promotion of Islamic microfinance to finally present the characteristics of this new funding model for vulnerable populations often excluded from the traditional financial system.

scholarly journals GATHERING BY DIVESTITURE AND EXTREMISM IN DISSEMINATION IN INDIA: ROLE OF THE STATE

2021 ◽  
Vol 02 (05) ◽  
pp. 54-58
Author(s):  
Frank N.L. ◽  
Keyword(s):  
General Public ◽  
The State ◽  
Standard Material ◽  
Critical Part ◽  
The Poor ◽  
Role Of The State ◽  
Big Picture ◽  
The Common

Divestiture and constrained partition of a segment of individuals from the methods for creation are inseparably connected with state-drove financial turn of events. In an acquired post-frontier improvement worldview, a 'big picture perspective' continued in India barred individuals living at the lower part of the financial stepping stool as equivalent accomplices who regarding rising 'standard' material assumptions experience 'divestiture' by removal. Extremism dependent on this ground reality, an outcome of lopsided improvement across friendly and monetary classes and across locales, turns into a result that worries both the state and the common society. Maybe than pulling out from the framework that advanced and got broken over the long haul, the paper thinks, the state needs to assume a critical part being developed the start and base of which must be to take into certainty the minimized areas of the general public like the ancestral individuals, the discouraged, and the poor as noble and equivalent accomplices.

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