Security design, incentives, and Islamic microfinance: Cross country evidence

Fan, Yaoyao and John, Kose and Liu, Frank Hong and Tamanni, Luqyan,(2019), Security design, incentives, and Islamic microfinance: Cross country evidence. , Journal of International Financial Markets, Institutions & Money, UNSPECIFIED

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Abstract

We provide cross country evidence from microfinance institutions (MFIs) that are Shariacompliant 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.
Keywords : Microfinance institutions Sharia-compliant product Islamic Security design Religiosity Cross country, UNSPECIFIED
Journal or Publication Title: Journal of International Financial Markets, Institutions & Money
Volume: UNSPECIFIED
Number: UNSPECIFIED
Item Type: Article
Subjects: Ekonomi Islam
Depositing User: Nila Nurjanah
Date Deposited: 16 Dec 2019 06:46
Last Modified: 16 Dec 2019 06:46
URI: https://repofeb.undip.ac.id/id/eprint/205

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