Prospects for Interest-Free Micro Finance in India: An Empirical Study

2021 ◽  
Vol 1 (1) ◽  
pp. 15-39
Author(s):  
Irfan Ahmed Sheikh
Keyword(s):  
Interest Rates ◽  
World Bank ◽  
Target Population ◽  
Islamic Banking ◽  
Group Level ◽  
Individual Level ◽  
Global Challenge ◽  
Banking And Finance ◽  
Islamic Microfinance ◽  
Paper Format

Despite the growth of Islamic banking and finance, in recent times due attention were given to the issue of Islamic microfinance. It is so because, as per various estimates over two billion people across globe are still living in a miserable poverty which is a global challenge and India not being an exception.  Since the Poverty remains, a continuous challenge throughout the human history so as the efforts to overcome poverty. Among various efforts a conventional micro finance a “new model” received global recognition and a hope. But even if successful stories in bringing development and eradicating poverty by small credit tool to poor and by gaining growing  attentions by world bank , still millennium development goal remains unachieved. The critics’ remains not only restricted to, in reaching all forms of poor rather high unbearable interest rates and avoidance by Muslims due to interest are on debate. As an alternative, Islamic finance has its operations both in Islamic and Non-Islamic countries along Islamic Micro finance.  It is so because Islamic microfinance programs are complement to Islamic banking, both in ideological and in practical terms. Although IMF is still in infancy stage even though growing rapidly. Various experiments either on individual level or group level are mostly practicing Islamic micro credit products. But Islamic micro crediting has not been yet formally reached to people for India. Therefore this study aims to investigate the prospects based on determinants. The target population has been taken a potential benifacries of interest free micro finance. The paper adopts a Quantifiable approach as a Questionnaire distributed in paper format based on stratified sampling with 602 as final responses. The findings shows that in general the community is cognizant of the various terms used in Interest free microfinance but in respects of products/services existing by Islamic microfinance institutes, it indicates the level of awareness is very low. 

Economic Turmoil in Islamic Banking Investment

ETIKONOMI ◽  
2020 ◽  
Vol 19 (2) ◽  
Author(s):  
Budiandru Budiandru ◽  
Sari Yuniarti
Keyword(s):  
Interest Rates ◽  
Stock Price ◽  
Time Series Data ◽  
Series Data ◽  
Islamic Banking ◽  
Vector Error Correction ◽  
Investment Financing ◽  
Vector Error ◽  
Operational Activities

Investment financing is one of the operational activities of Islamic banking to encourage the real sector. This study aims to analyze the effect of economic turmoil on investment financing, analyze the response to investment financing, and analyze each variable's contribution in explaining the diversity of investment financing. This study uses monthly time series data from 2009 to 2020 using the Vector Error Correction Model (VECM) analysis. The results show that the exchange rate, inflation, and interest rates significantly affect Islamic banking investment financing in the long term. The response to investment financing is the fastest to achieve stability when it responds to shocks to the composite stock price index. Inflation is the most significant contribution in explaining diversity in investment financing. Islamic banking should increase the proportion of funding for investment. Customers can have a larger business scale to encourage economic growth, with investment financing increasing.JEL Classification: E22, G11, G24How to Cite:Budiandru., & Yuniarti, S. (2020). Economic Turmoil in Islamic Banking Investment. Etikonomi: Jurnal Ekonomi, 19(2), xx – xx. https://doi.org/10.15408/etk.v19i2.17206.

Islamic Banking in Nigeria: Issues and Prospects

2016 ◽  
Vol 4 (2) ◽  
pp. 34 ◽  
Author(s):  
Nuruddeen Abba Abdullahi
Keyword(s):  
Public Awareness ◽  
Banking System ◽  
Islamic Banking ◽  
Secondary Sources ◽  
Banking And Finance ◽  
Adequate Knowledge ◽  
Islamic Religion ◽  
Developmental Opportunities ◽  
The Subject ◽  
Nigerian Banking

The Nigerian banking reform precipitated the adoption of Islamic banking and finance in 2009 as additional door to banking mechanism in the country. However, the implementation of the Islamic banking or non-interest banking has generated a lot of debate, specifically because its foundations are based on Islamic religion. This paper briefly reviews the concept, the challenges and prospects of Islamic banking in Nigeria. The paper relies on the secondary sources by reviewing and analysing various works on the subject. A reflection on the size of its population and the developmental opportunities indicates that Nigeria has the prospect of becoming the hub centre of Islamic finance in Africa. Yet there are numerous challenges to the development of the Islamic banking system in the country, including misrepresentation of the system, lack of linkages and investment institutions, lack of adequate knowledge, as well as shroud business ethos and corruption, which is endemic in the country. The paper recommends the need for greater public awareness about Islamic banking and creation of enabling environment (i.e. the legal, accounting and taxation systems) for the working of Islamic financial system.   

Reply to Connor and Evers (2020): Critique of the Bias of Crowds Model Simply Restates the Model

2020 ◽  
Author(s):  
Keith Payne ◽  
Heidi A. Vuletich ◽  
Kristjen B. Lundberg
Keyword(s):  
Implicit Bias ◽  
Group Level ◽  
Systemic Racism ◽  
Individual Level ◽  
The Core ◽  
Psychological Science ◽  
Implicit Biases ◽  
The Individual

The Bias of Crowds model (Payne, Vuletich, & Lundberg, 2017) argues that implicit bias varies across individuals and across contexts. It is unreliable and weakly associated with behavior at the individual level. But when aggregated to measure context-level effects, the scores become stable and predictive of group-level outcomes. We concluded that the statistical benefits of aggregation are so powerful that researchers should reconceptualize implicit bias as a feature of contexts, and ask new questions about how implicit biases relate to systemic racism. Connor and Evers (2020) critiqued the model, but their critique simply restates the core claims of the model. They agreed that implicit bias varies across individuals and across contexts; that it is unreliable and weakly associated with behavior at the individual level; and that aggregating scores to measure context-level effects makes them more stable and predictive of group-level outcomes. Connor and Evers concluded that implicit bias should be considered to really be noisily measured individual construct because the effects of aggregation are merely statistical. We respond to their specific arguments and then discuss what it means to really be a feature of persons versus situations, and multilevel measurement and theory in psychological science more broadly.

Islamic Banking and Finance in Theory and Practice

2005 ◽  
Vol 22 (2) ◽  
pp. 69-86 ◽  
Author(s):  
Abdus Samad ◽  
Norman D. Gardner ◽  
Bradley J. Cook
Keyword(s):  
Financial System ◽  
Primary Objective ◽  
Theory And Practice ◽  
Islamic Banking ◽  
Relative Importance ◽  
Islamic Banks ◽  
Equity Financing ◽  
Banking And Finance ◽  
Financial Products ◽  
Islamic Bank

This paper’s primary objective is to identify the relative importance of various Islamic financial products, in theory and in practice, by examining the financing records of the Bank Islam Malaysia (Berhad) and the Bahrain Islamic Bank. Currently, seven available Islamic financing products are considered viable alternatives to interest-based conventional contracts: mudarabah (trust financing), musharakah (equity financing), ijarah (lease financing), murabahah (trade financing), qard al-hassan (welfare loan), bay` bi al-thaman al-ajil (deferred payment financing), and istisna` (progressive payments). Among these financial products, mudarabah and musharakah are the most distinct. Their unique characteristics (at least in theory) make Islamic banks and Islamic financing viable alternatives to the conventional interest-based financial system. The question before us is to determine the extent of mudarabah and musharakah in Islamic financing in practice. The data are as follows: the average mudarabah is 5% of total financing, and the average musharakah is less than 3%. The combined average of mudarabah and musharakah for the two Islamic banks is less than 4% of the total finance and advances. The average qard al- hassan is about 4%, while istisna` does not yet exist in practice. Murabahah is the most popular and dominates all other modes of Islamic financing. The average use of murabahah is over 54%. When the bay` bi al-thaman al-ajil is added to the murabahah, the percentage of total financing is shown to be 2.68%. This paper also explores some possible reasons why these two Islamic banks appear to prefer murabahah to mudarabah and musharakah.

scholarly journals Examining the Effects of Three Group-Level Metacognitive Scaffoldings on In-Service Teachers’ Knowledge Building

2021 ◽  
pp. 073563312110308
Author(s):  
Fan Ouyang ◽  
Si Chen ◽  
Yuqin Yang ◽  
Yunqing Chen
Keyword(s):  
Small Groups ◽  
Mixed Method ◽  
Peer Interactions ◽  
Knowledge Building ◽  
Group Level ◽  
Question Asking ◽  
Individual Level ◽  
The Individual ◽  
Task Oriented ◽  
Metacognitive Scaffolding

Group-level metacognitive scaffolding is critical for productive knowledge building. However, previous research mainly focuses on the individual-level metacognitive scaffoldings in helping learners improve knowledge building, and little effort has been made to develop group-level metacognitive scaffolding (GMS) for knowledge building. This research designed three group-level metacognitive scaffoldings of general, task-oriented, and idea-oriented scaffoldings to facilitate in-service teachers’ knowledge building in small groups. A mixed method is used to examine the effects of the GMSs on groups’ knowledge building processes, performances, and perceptions. Results indicate a complication of the effects of GMSs on knowledge building. The idea-oriented scaffolding has potential to facilitate question-asking and perspective-proposing inquiry through peer interactions; the general scaffolding does not necessarily lessen teachers’ idea-centered explanation and elaboration on the individual level; the task-oriented scaffolding has the worst effect. Pedagogical and research implications are discussed to foster knowledge building with the support of GMSs.

Pluralistic Ignorance Research in Psychology: A Scoping Review of Topic and Method Variation and Directions for Future Research

2021 ◽  
pp. 108926802199516
Author(s):  
Rikki H. Sargent ◽  
Leonard S. Newman
Keyword(s):  
Scoping Review ◽  
Future Research ◽  
Pluralistic Ignorance ◽  
Group Level ◽  
Conceptual Approach ◽  
Individual Level ◽  
Group Members

Pluralistic ignorance occurs when group members mistakenly believe others’ cognitions and/or behaviors are systematically different from their own. More than 20 years have passed since the last review of pluralistic ignorance from a psychological framework, with more than 60 empirical articles assessing pluralistic ignorance published since then. Previous reviews took an almost entirely conceptual approach with minimal review of methodology, making existing reviews outdated and limited in the extent to which they can provide guidelines for researchers. The goal of this review is to evaluate and integrate the literature on pluralistic ignorance, clarify important conceptual issues, identify inconsistencies in the literature, and provide guidance for future research. We provide a comprehensive definition for the phenomenon, with a focus on its status as a group-level phenomenon. We highlight three areas of variation in particular in the current scoping review: variation in topics assessed, variation in measurement, and (especially) variation in methods for assessing the implications of individual-level misperceptions that, in aggregate, lead to pluralistic ignorance. By filling these gaps in the literature, we ultimately hope to motivate further analysis of the phenomenon.

Fudhuli Transactions:Potential Applications and Parameters

2021 ◽  
Vol 12 (3) ◽  
pp. 2801-2811
Author(s):  
Ahmad Zakirullah Mohamed Shaarani Et.al
Keyword(s):  
Islamic Finance ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Library Research ◽  
Do So

Tasarrufal-Fudhuli refers to transactions or contracts carried out by a person who does not have the authority or legitimacy to commit the transaction, and these contracts include exchange contracts such as sales, rent and services, or charitable contracts such as representation/wakalah, hibah, loans, guarantees, and so on. In the context of Islamic finance, although it is a type of transaction that is argued and debated by the jurists and fuqaha, some have begun to realize its great potential in keeping with current developments, especially in the field of Islamic banking and finance. Besides looking at Fudhuli in terms of its meaning and the Shariah rules that govern it, the main focus of this study is the discussion of its dhawabhit/ parameters as it has its own risks associated with it compared to other established types of Islamic contracts. The study utilizes a full library research by analyzing scholar`s debates and their arguments on this kind of contract, the contract`s potential, followed by analyzing the parameters that should be adopted in operationalizing this contract together with the discussion on the issues of fudhulithat are relevant to current Islamic banking and finance operations. The results of this study show that the views that allow this contract has strong arguments, and that it has also been widely practiced outside of Malaysia, but is relatively new in Malaysia. While it is permissible, however, some parameters must be put in place so that it is not in conflict with Shariah, and comply with the Shariah requirement of each contract done on a fudhuli basis. There must also be an urgent and genuine need to do so, and not involve ribawi items that require immediate delivery of the asset, as well as the existence of a council or body that controls and monitors the process and implementation by the involved parties

Sign in / Sign up

Export Citation Format

Share Document