Financial Inclusion through Islamic Finance : Measurement Framework

2017 ◽  
Vol 14 (2) ◽  
pp. 129-155 ◽  
Author(s):  
Junaidah Abu Seman ◽  
Avylin Roziana Mohd Ariffin
Keyword(s):  
Financial Inclusion ◽  
Islamic Finance ◽  
Measurement Framework

Islamic Financial Inclusion

2020 ◽  
pp. 155-173
Author(s):  
S. M. Sohrab Uddin ◽  
Mohammad Zoynul Abedin ◽  
Nahid Afroz
Keyword(s):  
Banking Sector ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Policy Makers ◽  
Muslim Population ◽  
Muslim Countries ◽  
The World ◽  
Global Concern ◽  
Empirical Contribution

Financial Inclusion (FI), a global concern of this decade, has been accepted by development agencies, governments, and policymakers as one of the pre-eminent ways to eradicate worldwide poverty and income inequality. Consequently, authorities are looking for possible ways to include the unbanked in formal financial chain. Islamic finance, specifically Islamic banking, with its welfare-oriented principles and unique products, has been able to capture the attention of policy makers. Moreover, a major portion of the Muslim population still exclude themselves from the formal financial chain due to religious prohibition of interest-based transactions for whom Islamic finance is the only way to inclusion. Bangladesh, one of the major Muslim countries in the world, is still to bring one-fourth of its total population under formal financial chain. At this backdrop, this chapter examines the empirical contribution of Islamic banking sector in financial inclusion condition as well as development scenario of Bangladesh.

scholarly journals Financial Inclusion : Islamic Finance Perspective

2012 ◽  
Vol 2 (1) ◽  
pp. 35-64 ◽  
Author(s):  
Zamir Iqbal ◽  
Abbas Mirakhor
Keyword(s):  
Financial Inclusion ◽  
Islamic Finance

scholarly journals Development of Integrated Islamic Finance-Based Index of Financial Inclusion Using Zakat and Cash Waqf: A Preliminary Study in Malaysia

2021 ◽  
Author(s):  
Junaidah Abu Seman ◽  
Nurul Nazlia Jamil ◽  
Azreen Jihan Che Mohd Hashim
Keyword(s):  
Secondary Data ◽  
Current Measurement ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Access To Finance ◽  
Preliminary Study ◽  
A Priority ◽  
Index Level ◽  
The Impact ◽  
Self Administered Questionnaire

Financial inclusion is a priority agenda in many countries. While the importance of financial inclusion index is widely recognized, the literature lacks a constructive discussion on its measurement in the light of Islamic finance since it is believed that only by the incorporation of the Shariah-based instruments, the level of access to finance can be improved. The study aims to develop a methodology for the computation of an integrated Islamic finance-based index of financial inclusion in Malaysia. Based on the current measurement of financial inclusion index (IFI) in Malaysia, this study employs a self-administered questionnaire and secondary data from Jabatan Waqaf, Zakat dan Haji (JAWHAR) and Yayasan Waqaf Malaysia (YWM), to measure the integrated Islamic finance based financial inclusion index for year 2011 and 2015.  Zakat and cash waqf indicators are added in the index computation to represent Islamic finance components. Depending on the value of the index, a country is classified into four categories; high, above average, moderate or low integrated Islamic finance-based of financial inclusion. It is found that the level of financial inclusion using Islamic finance indicator in Malaysia is above average. The overall index level is increased from 0.49 in year 2011 to 0.55 in year 2015. Interestingly, most of the level of zakat and cash waqf indicator indexes are low which indicate that these channels require specific attention to tackle financial inclusion in Malaysia. It is hoped that the findings would be useful for the development of financial inclusion index using Islamic finance approach and monitoring the impact of zakat and waqf to the society.

scholarly journals The Effect Of Islamic Financial Literation And Financial Technology On Islamic Financial Inclusion

2020 ◽  
Vol 5 (2) ◽  
pp. 231
Author(s):  
Basrowi Basrowi ◽  
Tulus Suryanto ◽  
Erike Anggraeni ◽  
Muhammad Nasor
Keyword(s):  
Significant Influence ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Survey Method ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Study Program ◽  
Independent Variables ◽  
Financial Technology

Purpose: The purpose of this study was to determine the magnitude of the influence of Islamic financial literacy and Islamic financial technology on the inclusion of Islamic finance in students in Lampung Province both partially and simultaneously.Design Methods:The method used is a survey method. The population of this study is all smester V students and above in Islamic Economics Study Program, Islamic Banking. and sharia accounting in all State and Private Universities in Lampung Province, totaling 3080 people. The sampling technique used is proportional grain sampling, as much as 10% of the population of 308 people. Data collected using surveys, with google form. The collected data were analyzed using simple and multiple regression analysis.Findings:Based on the results of the analysis it can be concluded, first, there is a positive and significant influence between the literacy of Islamic finance on Islamic financial inclusion. Second, there is a positive and significant influence between Islamic financial technology on Islamic financial inclusion. Third, there is a positive and significant influence between Islamic financial literacy and Islamic financial technology together on Islamic financial inclusion.Originality Value: Of the two independent variables, sharia financial literacy variables contributed more than sharia financial technology variables to sharia financial inclusion.

scholarly journals A study on Islamic finance as an approach for financial inclusion in India

Accounting ◽  
2021 ◽  
pp. 487-496 ◽  
Author(s):  
Taufeeque Ahmad Siddiqui ◽  
Mohammad Naushad ◽  
M.K. Ummer Farooque
Keyword(s):  
Discriminant Analysis ◽  
Financial System ◽  
The State ◽  
Financial Inclusion ◽  
Descriptive Statistics ◽  
Islamic Finance ◽  
Finance System ◽  
Financial Exclusion ◽  
And Gender

This paper endeavors to investigate whether the Islamic financial system can tackle the issue of financial exclusion in India or not. The present study has made an earnest attempt to explore the discriminating factors behind choosing of the institutes (conventional or Islamic), in decreasing order of their importance. Data for the study are collected from 635 respondents, who are customers of Islamic and traditional financial institutes. The area selected for the survey is the state of Kerala, which is considered as the Islamic finance hub in India. The data collected are analyzed by employing the discriminant analysis along with drawing inferences from descriptive statistics. The study finds various factors in descending order of their importance. The factors are type of employment, religion (Muslim/Non-Muslim), income and gender. These are discriminating factors for choosing particular institutes (conventional or Islamic). The study shows that Islamic finance system was chosen by those, particularly Muslims, who did not have good employment and sufficient income. Hence, it is recommended that extensive formal beginning of Islamic finance in India, will lead to higher financial inclusion, since generally the financially excluded individuals belong to the said segments of the society, furthermore, Islamic finance is highly fascinated by the mentioned groups, the planners should think accordingly. The study is novel in its’ approach as it evidently illustrates that Islamic financial system is chosen by those, who do not have good employment, Muslims and those who earn less. Thus, there should be extensive formal commencement of Islamic finance in India to kick off higher financial inclusion.

Social Empowerment Through Islamic Finance

2020 ◽  
pp. 115-128
Author(s):  
Mustapha Abubakar
Keyword(s):  
Social Cohesion ◽  
Poverty Reduction ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Social Disorder ◽  
Muslim Communities ◽  
Social Empowerment

Islamic social finance as an order ordained by Allah (Subhanahu wa Taala) for the benefit of mankind, seeks to provide an avenue for financial inclusion as well as entrenching social cohesion among Muslim communities across the globe. This is achieved with the application of Zakat (compulsory alms giving), Waqf (Islamic endowment), Sadaqah (Voluntary charity giving), and Qard (Loan giving) as the instruments. As poverty remains a social disorder and an affront to human prosperity, Islam has provided a remedy to its scourge. This chapter presents a discussion on poverty reduction if these instruments are effectively implemented in Muslim communities across the globe.

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