Improving Rural Livelihoods in North East Kenya: Evidence of Sharia Cooperatives Outreach

Sharia cooperatives (SACCO) are essential low-cost financing that helps underserved communities in Kenya through giving loans, savings, school fees, and considerable group lending. This research used both the structured questionnaires and Focus Group Discussion methods to investigate Sharia cooperatives providers and clients as the best means of financial inclusion to support the disadvantaged people in North-East Kenya (NEK) counties. Four dimensions of financing outreach including scope, cost, worth, and depth sharia cooperatives outreach have been studied. The results have shown Kenyans sharia cooperatives have not achieved a reasonable scope of outreach. This might be due to what is found in the study the lack of qualified sharia cooperatives staff and both financial and digital financial illiteracies of the clients. The clients were found to have low knowledge of their products and services, lack of using the internet and digital devices, and more than 80% of them undertaking transactions at the premises and preferred direct contact. Moreover, the results showed the investigated SACCO did not reach the optimal worth outreach Due to the increase in the number of underserved people and the high rate of poverty in the remote rural areas. The results also show SACCO in Kenya have achieved reasonable depth outreach since they are covered the underserved community members such as women, youth but need to exert still more efforts to reach the remote rural areas. Although the customers have seen the cost of sharia cooperative services is reasonable, the results showed the high cost of attracting new clients. That might be due to the unused of the targeted communities the new means of connections such as webmail, internet, and smart devices. Based on these results the study might recommend that these SACCO might need to implement effective training strategies to enhance clients and staff knowledge to improve financial and digital illiteracy to improve the scope, worth, and cost outreach dimensions. The results also show low depth outreach due to the poor basic infrastructures, lack of capital to adopt wireless finance to expand to remote areas. For this study might recommend more capital injection for SACCO to adopt digital financial technology. These results give good policy implication for the Islamic Development Institution (IsDB), Islamic financial institutions, investors, and other alike to help these sharia cooperatives through capital injection, financial awareness seminars, telecommunication companies, and building capacity programs to promote this low-cost financing for the most disadvantaged Muslim minority in Kenya.

ANALISIS YURIDIS KEDUDUKAN SURAT PERNYATAAN SETOR MODAL SEBAGAI PENGGANTI BUKTI SETOR MODAL DALAM PENDIRIAN PERSEROAN TERBATAS DI INDONESIA

Penelitian ini menjelaskan bahwa pada Pasal 32 Ayat (1) Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas disebutkan bahwa modal dasar pendirian Perseroan Terbatas paling sedikit berjumlah Rp50.000.000,. Namun jumlah tersebut menyulitkan bagi pelaku Usaha Mikro, Kecil, dan Menengah (UMKM), khususnya usaha mikro. Oleh karena itu, dalam Peraturan Menteri Hukum dan Hak Asasi Manusia Nomor 4 Tahun 2014 kemudian mempermudah pendirian Perseroan Terbatas dengan pendiri hanya membuat Surat Pernyataan Telah Menyetor Modal tanpa harus menyetorkan modalnya. Mengingat penyetoran modal pendirian Perseroan Terbatas merupakan kewajiban yang mutlak yang harus dipenuhi oleh siapapun yang telah menyetujui penempatan modalnya pada Perseroan Terbatas dalam suatu dokumen resmi, baik yang dilakukan sebelum maupun setelah Perseroan Terbatas berdiri dan memperoleh status sebagai badan hukum, maka ketiadaan penyetoran modal pada saat yang telah ditentukan dapat melahirkan perikatan utang-piutang antara Perseroan Terbatas sebagai kreditur dengan pemegang saham sebagai debitur. Metode yang digunakan dalam penelitian ini adalah penelitian hukum normatif. Abstract This research explain that Article 32 Paragraph (1) of Law Number 40 of 2007 concerning Limited Liability Companies states that the authorized capital for the establishment of a Limited Liability Company is at least IDR 50,000,000,. However this number makes it difficult for Micro, Small and Medium Enterprises (MSMEs), especially micro businesses. Therefore, in the Regulation of the Minister of Law and Human Rights Number 4 of 2014 then it makes it easier for the establishment of a Limited Liability Company with the founders only to make a Statement of Having Paid Capital without having to deposit their capital. Considering that the payment of capital for the establishment of a Limited Liability Company is an absolute obligation that must be fulfilled by anyone who has approved the placement of their capital in a Limited Liability Company in an official document, either before or after the Limited Liability Company has been established and obtained its status as a legal entity, there is no capital injection at the time. which has been determined can give birth to a debt-receivable agreement between the Limited Liability Company as a creditor and the shareholders as the debtor. . The method used in this research is normative legal research.

Randomized observation periods for compound Poisson risk model with capital injection and barrier dividend

In this paper, we model the insurance company’s surplus by a compound Poisson risk model, where the surplus process can only be observed at random observation times. It is assumed that the insurer observes its surplus level periodically to decide on dividend payments and capital injection at the interobservation time having an $\operatorname{Erlang}(n)$ Erlang ( n ) distribution. If the observed surplus level is greater than zero but less than injection line $b_{1} > 0$ b 1 > 0 , the shareholders should immediately inject a certain amount of capital to bring the surplus level back to the injection line $b_{1}$ b 1 . If the observed surplus level is larger than dividend line $b_{2}$ b 2 ($b_{2} > b_{1}$ b 2 > b 1 ), any excess of the surplus over $b_{2}$ b 2 is immediately paid out as dividends to the shareholders of the company. Ruin is declared when the observed surplus level is negative. We derive the explicit expressions of the Gerber–Shiu function, the expected discounted capital injection, and the expected discounted dividend payments. Numerical illustrations are also given to analyze the effect of random observation times on actuarial quantities.

Optimal dividends and capital injection under dividend restrictions

We study a singular stochastic control problem faced by the owner of an insurance company that dynamically pays dividends and raises capital in the presence of the restriction that the surplus process must be above a given dividend payout barrier in order for dividend payments to be allowed. Bankruptcy occurs if the surplus process becomes negative and there are proportional costs for capital injection. We show that one of the following strategies is optimal: (i) Pay dividends and inject capital in order to reflect the surplus process at an upper barrier and at 0, implying bankruptcy never occurs. (ii) Pay dividends in order to reflect the surplus process at an upper barrier and never inject capital—corresponding to absorption at 0—implying bankruptcy occurs the first time the surplus reaches zero. We show that if the costs of capital injection are low, then a sufficiently high dividend payout barrier will change the optimal strategy from type (i) (without bankruptcy) to type (ii) (with bankruptcy). Moreover, if the costs are high, then the optimal strategy is of type (ii) regardless of the dividend payout barrier. We also consider the possibility for the owner to choose a stopping time at which the insurance company is liquidated and the owner obtains a liquidation value. The uncontrolled surplus process is a Wiener process with drift.

On a Periodic Capital Injection and Barrier Dividend Strategy in the Compound Poisson Risk Model

In this paper, we assume that the reserve level of an insurance company can only be observed at discrete time points, then a new risk model is proposed by introducing a periodic capital injection strategy and a barrier dividend strategy into the classical risk model. We derive the equations and the boundary conditions satisfied by the Gerber-Shiu function, the expected discounted capital injection function and the expected discounted dividend function by assuming that the observation interval and claim amount are exponentially distributed, respectively. Numerical examples are also given to further analyze the influence of relevant parameters on the actuarial function of the risk model.

KEBERKESANAN PROGRAM PEMBANGUNAN EKONOMI ASNAF OLEH LEMBAGA ZAKAT SELANGOR

The Asnaf Economic Programme is one of initiatives that has been planned and implemented by Lembaga Zakat Selangor (LZS) with the purpose of helping asnafs to groom their potentials in the entrepreneurship sector. The objective of the programme is in line with the zakat's own goals in ensuring that each asnaf is able to become independent and to build his or her own potentials in alleviating poverty. Various assistance in the form of capital injection and provision of equipment have been provided to the asnaf in achieving objectives of the programme. The study was conducted to identify factors influencing involvement and participation of the asnafs in the programme as well as to assess the programme effectiveness in improving life status and quality of each asnaf who involves in the programme. This study focuses on asnaf entrepreneurs in Kuala Selangor Distric and an interview method was used to get responses from each participant regarding the programme. A total of 8 aspiring entrepreneurs who participated in the programme were interviewed to gain their views on the effectiveness of the programme. In addition, the researcher used library data to obtain information related to the Asnaf Economic Programme itself. The results show that LZS has successfully produced a group of asnaf entrepreneurs through its economic programme. It has also provided a better life to the participants and reduced the number of asnafs in Selangor, specifically in Kuala Selangor area. In other words, the programme helps to increase the number of zakat payers to benefit unprivileged groups as well as to become role models to the other asnafs in that particular area. However, a thorough assessment of the programme has to be done by LZS in order to improve the quality and effectiveness of the programme in the future. Keywords: Efficiency, Economic Programme, Asnaf, Perception, Entrepreneurs Program Ekonomi Golongan Asnaf yang dirancang dan dilaksanakan oleh Lembaga Zakat Selangor (LZS) merupakan salah satu inisiatif bertujuan membantu meningkatkan potensi golongan asnaf dalam sektor keusahawanan. Hasrat ini selaras dengan objektif zakat itu sendiri bagi memastikan setiap asnaf mampu berdikari seterusnya membina potensi diri untuk keluar daripada belenggu kemiskinan. Pelbagai bantuan sama ada dalam bentuk suntikan modal mahupun penyediaan peralatan telah diberikan kepada setiap peserta bagi mencapai objektif program. Kajian ini dijalankan untuk mengenalpasti faktor yang mempengaruhi penglibatan dan penyertaan golongan asnaf dalam program ini di samping menilai tahap keberkesanan program dalam meningkatkan taraf dan kualiti hidup setiap peserta. Kajian difokuskan kepada para usahawan asnaf di Daerah Kuala Selangor. Kajian ini menggunakan kaedah temu bual untuk mendapatkan respon setiap peserta berkaitan program ini. Seramai 8 orang usahawan asnaf yang menjalani program ini telah ditemu bual bagi mendapatkan persepsi mereka berkaitan keberkesanan program ini. Selain itu, pengkaji juga menggunakan data kepustakaan bagi mendapatkan maklumat berkaitan dengan Program Ekonomi Golongan Asnaf itu sendiri. Hasil kajian mendapati bahawa Lembaga Zakat Selangor (LZS) telah berjaya melahirkankan kelompok usahawan daripada golongan asnaf ini melalui program ekonomi yang dijalankan. Hal ini berjaya mengubah kehidupan mereka menjadi lebih baik serta dapat mengurangkan bilangan asnaf di Selangor umumnya serta di daerah Kuala Selangor khususnya. Secara tidak langsung, bilangan pengeluar zakat di Selangor juga dapat ditingkatkan supaya dapat membantu golongan asnaf yang lain yang dalam kesusahan di samping menjadi model atau contoh kepada asnaf yang lain. Namun, usaha-usaha penambahbaikan perlu dilakukan oleh pihak yang LZS bagi meningkatkan lagi kualiti program yang akan dijalankan dari semasa ke semasa. Kata Kunci : Keberkesanan, Program Ekonomi, Asnaf, Persepsi, Usahawan

Cross-Border Lending, Government Capital Injection, and Bank Performance

In this paper, we develop a contingent claim model to examine the optimal bank interest margin, i.e., the spread between the domestic loan rate and the deposit market rate of an international bank in distress. The framework is used to evaluate the cross-border lending efficiency for a bank that participates in a government capital injection program, a government intervention used in response to the 2008 financial crisis. This paper suggests that government capital injection is an appropriate way to recapitalize the distressed bank, enhancing the bank interest margin and survival probability. Nevertheless, the government capital injection lacks efficiency when the bank’s cross-border lending is high. Stringent capital regulation, suggested to prevent future crises by literature, leads to superior lending efficiency when the government capital injection is low.