Enhancing Financial Inclusion through Islamic Finance, Volume I

Preface
Acknowledgments
Contents
Notes on Contributors
List of Figures
List of Tables
Part I: Enhancing Financial Inclusion Through Islamic Finance
	Chapter 1: Introduction
		References
	Chapter 2: Empowering the Poor and Enhancing Financial Inclusion from a Multidimensional Perspective
		2.1 Introduction
		2.2 Why Is Financial Inclusion So Important?
		2.3 Property Rights and Economic Equality
		2.4 Multidimensional Concept of Financial Inclusion
		2.5 Financial Literacy and Access to Financial Services
		2.6 Income and Wealth Redistributive Instruments
		2.7 Development of Micro, Small, and Medium Enterprises
			2.7.1 SME Capital Market Development
			2.7.2 Crowdfunding and Social Impact Investor Platforms
			2.7.3 Microfinancing Programs
			2.7.4 Vocational Training Programs for the Poor and Disabled
			2.7.5 Sound Regulatory, Supervisory, and Enforcement Framework
		2.8 Adequate Metrics for Performance Measure
		2.9 Behavioral Issues in Financial Decision-Making
			2.9.1 Behavioral Approach to Financial Inclusion
		2.10 Conclusion
		References
	Chapter 3: Causes of Income and Wealth Inequalities: Perspectives of Economists from the Fields of Conventional and Islamic Economics
		3.1 Introduction
		3.2 The Views of Economists from Conventional Economics on Inequality
			3.2.1 The Views of the French Economist Thomas Piketty Concerning Inequality
			3.2.2 The Views of Nobel Laureate Joseph Stiglitz Concerning Inequality
			3.2.3 The Views of Positive Money Concerning Inequality
		3.3 The Views of Muslim Economists on Inequality
			3.3.1 The Views of Al-Ghazali Concerning Inequality and the Role of Interest (Riba)
			3.3.2 The Views of Mufti Taqi Usmani Concerning Inequality
			3.3.3 The Views of Mufti Muhammad Shafi Concerning Inequality
		3.4 Comparison of the Above Views of the Conventional and Islamic Economists
		3.5 Conclusion and Recommendations
		Bibliography
	Chapter 4: Contribution of Islamic Microfinance Studies in Achieving Sustainable Development Goals
		4.1 Why Islamic Microfinance Studies Matter?
		4.2 Studies on Research Mappings
		4.3 MDGs and SDGs
		4.4 ‘What Is Going on Here?’ Methodology
		4.5 Mapping of Islamic Microfinance Studies
		4.6 Conclusion and Recommendation
			4.6.1 Recommendation
		References
	Chapter 5: Islamic Finance and Its Impact on Financial Inclusion
		5.1 Introduction
		5.2 Poverty and Financial Capability
		5.3 Financial Inclusion
		5.4 Financial Inclusion Through Risk-Sharing
			5.4.1 Small-Medium Enterprises
			5.4.2 Microfinance
			5.4.3 Micro-Takaful
		5.5 Financial Inclusion Through Redistribution Institutions
			5.5.1 Sadaqah
			5.5.2 Zakat
			5.5.3 Qard al-Hasan
			5.5.4 Waqf
		5.6 Relation Between Financial Inclusion and Financial Capability
		5.7 Propositions
		5.8 Conclusion
		References
	Chapter 6: A Critical Review of Takaful Companies’ Contributions to Economic Developments in Fulfilment of Maqasid al-Sharı̄ʿah: Evidence from Malaysia
		6.1 Introduction
		6.2 Literature Review and Hypothesis Development
		6.3 Methodology
		6.4 Results and Discussion
		6.5 Conclusion
		References
Part II: Islamic Financial Inclusion: Cases and Modeling
	Chapter 7: Making Islamic Finance a Vehicle for Social Inclusion: A Case for Revisiting the Liquidity Management Practices by Islamic Banks
		7.1 Introduction
		7.2 Learning the Lesson?
		7.3 Strengths of Islamic Finance System
		7.4 Islamic Finance as in Vogue—The Issue of Approach and Mindset
		7.5 The Way to Achieving Social Inclusion through Islamic Finance
		7.6 Liquidity Risk, Liquidity Management, and Its Tools
		7.7 The Myth of Excess Liquidity with Islamic Banking Institutions
		7.8 Islamic Banks’ Practices for Liquidity Management
			7.8.1 Tawarruq/Commodity Murabaha/Sukuk Murabaha
				Why Tawarruq to Be Excluded from IBIs’ Kitty?
			7.8.2 Shari‘ah-Compliant Derivatives as Liquidity Management Tools
		7.9 What Islamic Banks Need to Do for Liquidity Management?
		7.10 Conclusion
		Appendix
		References
	Chapter 8: Improving Access to Financial Services: Theory and Practice Around the Globe
		8.1 Introduction
		8.2 Causal Mapping of Theories of Economic Development
		8.3 Understanding the Dynamics of Financial Inclusion—Practices from Different Parts of the World
			8.3.1 The Farmers’ Cooperatives
			8.3.2 Microfinance Institutions/Banks
			8.3.3 Interest-Free Loans (Qarz-e-Hassan)
			8.3.4 Social Networks at Work for Financial Inclusion in the UK
			8.3.5 Financial Inclusion in India—Impact of Social Banking and Pro-market Reforms
			8.3.6 Financial Literacy in South Africa
			8.3.7 Education and Income Improve Financial Inclusion in Africa
			8.3.8 Financial Inclusion and Country Characteristics
			8.3.9 Financial System Structure
		8.4 Islamic Sharing Institution: A Tool to Enhance Financial Inclusion
		8.5 Conclusion
		References
	Chapter 9: Fintech and Financial Inclusion in Pakistan: An Exploratory Study
		9.1 Introduction
		9.2 Overview of Financial Inclusion in Pakistan
		9.3 Information and Communication Technologies Environment in Pakistan
		9.4 Comparison of Pakistan Performance in ICT in the Years 2015 and 2016
		9.5 Fintech and Its Applications and Financial Inclusion
			9.5.1 Digital Payments
			9.5.2 Crowdfunding and P2P Lending
			9.5.3 InsureTech
			9.5.4 Big Data Analysis and Cloud Computing
			9.5.5 Blockchain and Smart Contracts
			9.5.6 Artificial Intelligence, Internet of Things and Robo-Advisors
		9.6 A Pragmatic Scheme “Five Points Agenda” for Pakistan
			9.6.1 Leadership with True Vision and Will
			9.6.2 Regulatory Sandbox for Fintech
			9.6.3 Digital Infrastructure and Latest Technologies
			9.6.4 Interoperability, Coordination, and Collaboration
			9.6.5 Awareness of ICT and Financial Literacy
		9.7 Conclusions and Implications
		References
	Chapter 10: Financial Inclusion for Farmers Through Appropriate Financing Products: Analytic Network Process Approach
		10.1 Introduction
		10.2 Research Objectives
		10.3 Sharia Financial Institutions
			10.3.1 Theory and Concepts of Sharia Financial Institutions
		10.4 The Role of Sharia Financial Institutions in the Agricultural Sector
		10.5 Research Methodology
			10.5.1 Profile of BMT as Salam
			10.5.2 Data Source and Data Collection
			10.5.3 ANP Method
			10.5.4 BOCR Analysis
			10.5.5 ANP Research Stages
		10.6 Analysis and Discussion
			10.6.1 Problem Decomposition
		10.7 Geometric Mean Results of the BOCR Model
			10.7.1 Geometric Mean of Cluster Benefit
			10.7.2 Geometric Mean of Cluster Opportunity
			10.7.3 Geometric Mean of Cluster Cost
			10.7.4 Geometric Mean of Cluster Risk
			10.7.5 BOCR Synthesis Results
		10.8 Conclusions
		References
			Transcripts of Interview
	Chapter 11: Skill-Based and Interest-Free Microfinance Model of Entrepreneurship as the More Sustainable Model
		11.1 Introduction
		11.2 Pakistan’s Microfinance Industry
		11.3 Literature Review
		11.4 Research Methodology
		11.5 Results and Discussion
			11.5.1 Descriptive Statistics
		11.6 Case Studies
		11.7 Conclusion
		References
Index