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Security design, incentives, and Islamic microfinance: Cross country evidence
We provide cross country evidence from microfinance institutions (MFIs) that are Sharia-compliant and their comparisons with non-Sharia-compliant MFIs. We find that, compared with non-Sharia-compliant conventional MFIs, Sharia-compliant Islamic MFIs have less credit risk but are less profitable and...
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| Main Authors: | , , , |
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| Format: | Default Article |
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2019
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| Online Access: | https://hdl.handle.net/2134/11799051.v1 |
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| _version_ | 1823267547675361280 |
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| author | Yaoyao Fan Kose John Hong Liu Luqyan Tamanni |
| author_facet | Yaoyao Fan Kose John Hong Liu Luqyan Tamanni |
| author_sort | Yaoyao Fan (8397519) |
| collection | Figshare |
| description | We provide cross country evidence from microfinance institutions (MFIs) that are Sharia-compliant and their comparisons with non-Sharia-compliant MFIs. We find that, compared with non-Sharia-compliant conventional MFIs, Sharia-compliant Islamic MFIs have less credit risk but are less profitable and financially sustainable, have better poverty outreach, and are less likely to ‘mission drift’. Our results highlight the differences in religiosity and security design between these two institutions. Our study also helps practitioners and policy makers improve the understanding of the difference between conventional and Islamic MFIs. |
| format | Default Article |
| id | rr-article-11799051 |
| institution | Loughborough University |
| publishDate | 2019 |
| record_format | Figshare |
| spelling | rr-article-117990512019-08-17T00:00:00Z Security design, incentives, and Islamic microfinance: Cross country evidence Yaoyao Fan (8397519) Kose John (8397522) Hong Liu (6268211) Luqyan Tamanni (8397525) Microfinance institutions Sharia-compliant product Islamic Security design Religiosity Cross country We provide cross country evidence from microfinance institutions (MFIs) that are Sharia-compliant and their comparisons with non-Sharia-compliant MFIs. We find that, compared with non-Sharia-compliant conventional MFIs, Sharia-compliant Islamic MFIs have less credit risk but are less profitable and financially sustainable, have better poverty outreach, and are less likely to ‘mission drift’. Our results highlight the differences in religiosity and security design between these two institutions. Our study also helps practitioners and policy makers improve the understanding of the difference between conventional and Islamic MFIs. 2019-08-17T00:00:00Z Text Journal contribution 2134/11799051.v1 https://figshare.com/articles/journal_contribution/Security_design_incentives_and_Islamic_microfinance_Cross_country_evidence/11799051 CC BY-NC-ND 4.0 |
| spellingShingle | Microfinance institutions Sharia-compliant product Islamic Security design Religiosity Cross country Yaoyao Fan Kose John Hong Liu Luqyan Tamanni Security design, incentives, and Islamic microfinance: Cross country evidence |
| title | Security design, incentives, and Islamic microfinance: Cross country evidence |
| title_full | Security design, incentives, and Islamic microfinance: Cross country evidence |
| title_fullStr | Security design, incentives, and Islamic microfinance: Cross country evidence |
| title_full_unstemmed | Security design, incentives, and Islamic microfinance: Cross country evidence |
| title_short | Security design, incentives, and Islamic microfinance: Cross country evidence |
| title_sort | security design, incentives, and islamic microfinance: cross country evidence |
| topic | Microfinance institutions Sharia-compliant product Islamic Security design Religiosity Cross country |
| url | https://hdl.handle.net/2134/11799051.v1 |