Model of business activities of microfinance institutions in Indonesia

Mulyati, Etty; Harieti, Nun

doi:10.1088/1755-1315/175/1/012194

Cited by 6 publications

(7 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The stakeholders interviewed in this study viewed the role of BPRS to be wider than the view found in the existing literature. The latter advocates the role of BPRS in increasing the income and welfare of the community and helping to increase economic empowerment and community productivity by facilitating credit to poor, low-income people and MSMEs (Masyita, 2017; Mulyati and Harieti, 2018). The stakeholders interviewed in this study look at BPRS not only in terms of profit and clients' economic well-being but also see it as enhancing spirituality and carrying out daʿwah .…”

Section: Findings and Discussionmentioning

confidence: 99%

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

Akbar

Khalid

2021

IJIF

View full text Add to dashboard Cite

PurposeThis study investigates both internal and external stakeholders' views on the objectives and measures of performance of Indonesian Islamic microfinance banks (IMFBs).Design/methodology/approachThis study uses a qualitative approach. In-depth interviews were conducted with a wide range of internal and external stakeholders of IMFBs in Indonesia. The primary stakeholders interviewed comprised the board of directors of IMFBs located in several provinces in Indonesia, including rural and urban areas. The external stakeholders were the regulators/supervisors, represented by the Indonesian Financial Services Authority and Sharīʿah advisors of the National Sharīʿah Board as well as Muslim scholars. The data were analysed using CAQDAS, a computer-assisted tool for qualitative analysis.FindingsThe objectives of the IMFBs are seen to represent more than profits or economic well-being. Their objectives also comprise spirituality and daʿwah (Islamic propagation). Daʿwah is conducted through the provision of funding and services that are aligned with Sharīʿah (Islamic law), the dissemination of information about Islamic financing, which is based on Islamic values and principles, and the payment of zakat (Islamic alms) and charitable contributions. The measures of performance are considered to be more holistic than those of conventional banks. Profit and growth are deemed important as the means to achieve social well-being objectives.Research limitations/implicationsBetter insights into the objectives and measures of IMFBs could be achieved from interviews with other stakeholder categories, such as customers and the community. This could be the focus of future research.Originality/valueThis study added a new discussion to the limited empirical literature on IMFBs by investigating the views of stakeholders on the objectives and performance of IMFBs in Indonesia.

show abstract

Section: Findings and Discussionmentioning

confidence: 99%

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

Akbar

Khalid

2021

IJIF

View full text Add to dashboard Cite

show abstract

“…According to Lensink et al (2018), microfinance denotes the provision of financial services to those who earn a low income, including small traders, street vendors, small farmers, service providers (e.g., hairdressers and pedicab drivers), artisans, and small producers. Similarly, Mulyati and Harieti (2018) defined microfinance as a financial institution that offers financial services on a microscale, such as microscale savings, microscale credit, and microscale insurance, to serve the poor and the low-income society. The term "microfinance", as broadly defined by Banerjee and Jackson (2017), refers to smallscale financial services, particularly savings and loans, provided to small farmers, fishermen, and pastoralists, as well as those who run small businesses that produce, recycle, repair, and sell goods; provide minor services; work on a commission basis; or earn an income from renting agricultural machinery at the local level, both in rural and urban areas.…”

Section: Microfinancementioning

confidence: 99%

Microfinance program and food security: A Review in the Indonesian context

Purnawan¹,

Brunori

2022

JAAF

View full text Add to dashboard Cite

<p>This paper addresses the way microfinance programs affect food security, whic h is compiled based on a literature review of a total of 58 pieces of literature, from 1995 to 2020. Its paper sheds light on microfinance in rural areas in Indonesia, microfinance and food security, and critics related to microfinance programs based on a literature review. The result indicates that when the program’s impact on participants’ families’ food security and nutrition is measured, the results could be different. Most of the results stated a positive impact, but it might depend on many other factors. Taken together, the paper findings highlight the importance of a cycle of innovation, experimentation, and evaluation that must be carried out to build a robust financial institution to answer challenges and provide solutions to all the various conditions experienced by low-income families, involving various institutional structures, modes, and mechanisms. Other supporting factors are also important, including community involvement, the availability of safety nets, and non-financial support in many fields, such as increasing institutional capacity, business development, technology utilization, procurement, production, and, most importantly, marketing.</p>

show abstract

“…MFIs can be organized as cooperatives or as private limited companies. 102 MFIs can also apply Islamic banking principles. 103 The kind of regulation that applies to MFIs is to be determined by the size of the institution and whether the MFIs collect deposits.…”

Section: The Legal Regime For Mfis In Ethiopiamentioning

confidence: 99%

The Regulation and Supervision of Micro Finance Institutions in Ethiopia: The Need to Balance Social Objectives with Financial Sustainability

Yimer¹

2022

Miz Law Rev

View full text Add to dashboard Cite

Microfinance Institutions (MFIs) play an important role in providing access to finance in developing countries. However, how to effectively regulate MFIs remains one of the challenges that needs attention. The need for legal and financial innovation to enable MFIs to continue to provide the much-needed financial service to society is apparent. One of the proposals is to use regulatory frameworks that are closely related or similar to those we use in banks. Ethiopia is currently using laws that are in many ways similar to its banking laws to regulate Microfinance Institutions. However, this approach is not without its limitations. Complex and burdensome regulations greatly affect the efficiency of Microfinance Institutions. We need MFIs not to be just commercial banks. We need them to fill the gap that is created by the existing banking system. We need them to be more open to small-scale borrowers, to use flexible credit packages and to give priority to women and vulnerable groups in society. Therefore, we need a legal regime that considers these special traits of MFIs and provides the required support to these institutions to be sustainable and viable in the market. This article examines the legal regime in Ethiopia, outlines its limitations and provides suggestions to make it more efficient.

show abstract

Model of business activities of microfinance institutions in Indonesia

Cited by 6 publications

References 0 publications

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

Microfinance program and food security: A Review in the Indonesian context

The Regulation and Supervision of Micro Finance Institutions in Ethiopia: The Need to Balance Social Objectives with Financial Sustainability

Contact Info

Product

Resources

About