Islamic microfinance: An instrument for poverty alleviation

With the growth of Islamic finance industry, Islamic micro finance is becoming a populor tool in allviating the poverty in the developing countries, the artical is about Islamic mirco financing..

From The Financial Express Bangladesh

Islamic microfinance (IM) is becoming an increasingly popular mechanism for alleviating poverty, especially in developing countries around the world. The Islamic microfinance industry as a whole is expected to reach over $2.0 billion in 2012 and is a continually growing sector due to its ethical principles and prohibition of riba (interest). This amount of assets is, however, only 1.0 per cent of the total microfinance of the world.

The concept of IM adheres to the principles of Islam and is a form of socially responsible investment. Investors who use their wealth for IM projects only involve themselves in halal projects which benefit the community at large. Such projects include zakat, which is charity based, or trade and industry projects to develop a country’s economy.

Read more at : http://www.thefinancialexpress-bd.com/more.php?news_id=141342&date=2012-08-28

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India offers vast scope for Islamic banking

Most of the South Asia countries including Pakistan, Sri Lanka, Bangladesh and Maldives engaged with Islamic finance, still Indian Financial industry is struggling to open the door for Islamic finance industry though few attempts were done by some small groups. The following content is about Untapped Islamic banking market in India.

From Gulf News

Islamic banking may be in for some windfall gains if a reported move by Indian authorities to introduce some form of interest-free banking, aimed at bringing the country’s unbanked Muslim populations into mainstream banking, bears fruit.
If the initiative is taken to its logical conclusion, the Indian banking sector too stands to gain significantly as it will add huge numbers of new customers, while opening up a channel for substantial fund flow from regions such as the Gulf.
The Indian banking sector, which grabbed international news headlines last week, although for the wrong reasons — a nation-wide strike by employees of public sector banks and figuring in the controversy centering on Iran sanctions-related breaches by some international banking majors — however, provided some clues to the outside world about the kind of clout it enjoys in terms of customer base and business volumes.

Read more at : http://gulfnews.com/business/opinion/india-offers-vast-scope-for-islamic-banking-1.1066528

Redefining Islamic finance

OPTIMISTS will hail the fact that finally, after a mushroom growth in Pakistan of Islamic and other banks offering Sharia-compliant services and products, a debate has finally been generated about the viability and genuine adherence to religious teachings of these products and services.

An indicator of how this very important debate has begun to enter the mainstream was published in this newspaper some time ago in which the legitimacy of the interest-free financial instruments proffered by these banks was questioned. It was argued that an economic transaction would be considered riba- (interest) free if it avoids the multiplier mode of money-making, profit-taking and capital creation.

Read more : http://dawn.com/2012/08/24/redefining-islamic-finance/

source : Dawn.com