Enhancing Financial Inclusion through Islamic Finance, Volume II

Preface
Acknowledgments
Contents
Notes on Contributors
List of Figures
List of Tables
Part I: Islamic Financial Inclusion for Sustained Growth and Poverty Alleviation
	Chapter 1: Introduction
		References
	Chapter 2: Financial Inclusion for Poverty Alleviation: The Role of Islamic Finance in Bangladesh
		2.1 Introduction
		2.2 Literature Review
		2.3 Objective of the Study
		2.4 Theoretical Underpinning of Financial Inclusion
			2.4.1 Defining Financial Inclusion
			2.4.2 Islamic Concept of Financial Inclusion
		2.5 Where Do We Stand Globally?
		2.6 Access to Financial Services in Bangladesh
		2.7 Methodology
		2.8 Financial Sector in Bangladesh
			2.8.1 Banking Sector of Bangladesh
			2.8.2 Non-bank Financial Institutions
			2.8.3 Microfinance Institutions
		2.9 Role of Agriculture in Achieving Financial Inclusions in Bangladesh
			2.9.1 Agricultural Credit Program Banks in Bangladesh in FY2017
			2.9.2 Credit Disbursement to Agriculture
			2.9.3 Bangladesh Bank’s Refinance Against Agricultural Loans
				2.9.3.1	 Special Refinance Scheme for Share-croppers
				2.9.3.2	 Special Refinance Scheme for the Jute Sectors
				2.9.3.3	 Special Refinance Scheme for Dairy Farming
		2.10 Role of Microfinance Institutes (MFIs) in Achieving Financial Inclusion in Bangladesh
			2.10.1 Area Covered by MFIs
			2.10.2 Members of MFIs
			2.10.3 Allocation of Microcredit by Economic Activities
			2.10.4 Micro-enterprise Program of MFIs
			2.10.5 MFIs Loan to Micro-enterprises
			2.10.6 Micro-insurance for Clients of MFIs
			2.10.7 Employment Generation by MFIs
			2.10.8 Social Services by MFIs
		2.11 Role of the SME Sector in Achieving Financial Inclusion in Bangladesh
			2.11.1 Bangladesh Bank Refinance for SMEs
			2.11.2 Refinance Scheme for Agro-based Product Processing Industries
			2.11.3 Refinance Fund for New Entrepreneurs Under Cottage, Micro, and Small Categories
			2.11.4 Islamic Shariah-Based Refinance Scheme
			2.11.5 Refinance for Women Entrepreneurs
			2.11.6 Urban Building Safety Project (UBSP)
			2.11.7 Financial Inclusion of Garment Workers
		2.12 Corporate Social Responsibility in Achieving Financial Inclusion in Bangladesh
			2.12.1 CSR Activities of Banks and NBFIs
			2.12.2 CSR activities of Islami Bank Bangladesh Limited
			2.12.3 ‘No Poverty’ and ‘Zero Hunger’ for Financial Inclusion
			2.12.4 No-Frill Accounts (NFAs) for Farmers and the Underprivileged Group of the Society
			2.12.5 School Banking
			2.12.6 Banking for Working/Street Children
			2.12.7 Agent Banking
			2.12.8 Bangladesh Bank Refinance Scheme for BDT 10 A/C Holders
		2.13 Mobile Financial Services (MFS)
		2.14 Causes of Financial Exclusion
		2.15 Conclusion and Recommendations
		References
	Chapter 3: Does Bank Concentration and Financial Development Contribute to Economic Growth? Evidence from OIC Countries
		3.1 Introduction
		3.2 Literature Review
		3.3 Data and Methodology
			3.3.1 Baseline Empirical Models
			3.3.2 Estimation Method
				3.3.2.1	 Variables
			3.3.3 Data
				3.3.3.1	 Sample Selection and Data Collection
				3.3.3.2	 Descriptive Analysis: Overview
		3.4 Empirical Results
			3.4.1 Linear Model
			3.4.2 Non-Linear Model
			3.4.3 Interaction Term Model
			3.4.4 Low-Income Countries Model
			3.4.5 Corrupted Countries Model
		3.5 Concluding Remarks
		References
	Chapter 4: Using Islamic Banking to Improve Financial Inclusion in Selected States of Northern Nigeria: The Case of Jaiz Bank PLC
		4.1 Introduction
		4.2 A Review of Concept of Financial Inclusion: Conventional Perspective
		4.3 Empirical Review on Financial Inclusion via Islamic Banking Linkages
		4.4 Methodology
		4.5 Measuring Financial Inclusion
			4.5.1 Empirical Model
		4.6 Data Presentation
			4.6.1 Response Rate
			4.6.2 Individual Item Reliability
			4.6.3 Regression Models for Financial Inclusion
		4.7 Discussion of Findings
		4.8 Conclusion
		4.9 Recommendations
		Appendix: Summary of Measurement Scales
		References
	Chapter 5: Financial Inclusion Disclosure in Islamic Microfinance: The Case of Baitul Mal Wa Tamwil
		5.1 Introduction
		5.2 Literature Review
			5.2.1 Financial Inclusion in Islamic Microfinance
			5.2.2 Theoretical Framework
		5.3 Importance of Financial Inclusion Disclosure for Islamic Cooperative
		5.4 Description of Data and Variables
			5.4.1 Dependent Variable
			5.4.2 Independent Variable Operational Definition
		5.5 Results and Discussion
			5.5.1 Descriptive Analysis
			5.5.2 The Extent and Quality of Financial Inclusion Disclosure by Information Dimension
			5.5.3 Relationship Between Extent and Quality of Financial Inclusion in the Annual Report in BMT
				5.5.3.1	 Correlation Analysis
			5.5.4 Relationship of the Level of Financial Inclusion with Financial Performance
				5.5.4.1	 Hypothesis 1: ROE
				5.5.4.2	 Hypothesis 2: Leverage
				5.5.4.3	 Hypothesis 3: Size of BMT
		5.6 Conclusion
		Appendix: Holistic Financial Inclusion Disclosure Items
		References
	Chapter 6: Public Awareness and the Role of Islamic Deposit Insurance in Promoting Financial Inclusion
		6.1 Introduction
		6.2 Literature Review
		6.3 Purpose of the Study
		6.4 Research Methodology
			6.4.1 Population and Sampling
			6.4.2 Measures
		6.5 Data Analysis
			6.5.1 Demographic Profile
			6.5.2 Awareness Level
			6.5.3 Relationship Between Awareness, Confidence in the Financial System, Increased Participation and Increased Savings
			6.5.4 Awareness and Confidence in the Financial System
			6.5.5 Awareness and Increased Participation in the Financial System
			6.5.6 Awareness and Increased Household Savings
		6.6 Conclusion
		References
	Chapter 7: Islamic Financial Inclusion for Agriculture Development: The Case of South Al-Dweim Agricultural Microfinance Projects in the White Nile State, Sudan (2016–2018)
		7.1 Introduction
		7.2 Literature Review
			7.2.1 Islamic Wholesaling Banks and Microfinance
			7.2.2 The CBOS Standard Restricted Mudaraba Wholesale Lending Contract
			7.2.3 Microfinance Wholesaling via Portfolios
			7.2.4 Technology Transfer and Extension
			7.2.5 Agricultural Credit
			7.2.6 Islamic Financial Inclusion for Agriculture Development
		7.3 Data Sources
			7.3.1 Primary Source of Data
				7.3.1.1	 Questionnaire
				7.3.1.2	 Secondary Data Sources
		7.4 Discussion
			7.4.1 Characteristics of Respondents
			7.4.2 Questionnaire
			7.4.3 Network Performance Indicators in Sudan
			7.4.4 Financial Performance Summary of AL-FAL Islamic Microfinance Company
		7.5 Conclusion
			7.5.1 Summary of Major Findings
			7.5.2 Recommendations
		References
	Chapter 8: Enhancing Financial Inclusion Through Sustainable Islamic Microfinance in Pakistan: A Participatory Products Development Perspective
		8.1 Introduction
			8.1.1 Socioeconomic Profiles of Pakistan and State of Financial Inclusion
			8.1.2 Analysis of Microfinance Sector
			8.1.3 Objective of the Research
		8.2 Review of Literature
		8.3 Case Studies
		8.4 Conclusion
		References
Part II: Islamic Finance for Financial Inclusion: Countries Diagnostics
	Chapter 9: Enabling Mobile Microfinance: Opportunities and Challenges
		9.1 Introduction
		9.2 Literature Review
			9.2.1 The Context of Microfinance in Sudan
			9.2.2 Opportunities for MFI Services in Sudan
			9.2.3 Challenges Faced by Microfinance in the RoS
		9.3 Objectives and Methodology
			9.3.1 Objectives
			9.3.2 Methodology
			9.3.3 Limitations of the Methodology and Ethical Considerations
		9.4 Survey Results
		9.5 Conclusion
		References
	Chapter 10: The Role of Islamic Finance in Achieving Economic Growth: An Econometric Analysis of Pakistan
		10.1 Introduction
		10.2 Literature Review
		10.3 Data and Methodology
			10.3.1 Econometric Methodology
			10.3.2 Model Specification
		10.4 Results and Discussion
			10.4.1 Descriptive Analysis
			10.4.2 Unit Root Analysis
			10.4.3 Ordinary Least Square Method (OLS)
			10.4.4 Granger Causality Analysis
		10.5 Conclusion and Recommendations
		Appendix: Data of Variables
		References
	Chapter 11: The Impact of the Islamic Banking Industry on Economic Growth and Poverty Reduction in Pakistan
		11.1 Introduction
		11.2 Literature Review
			11.2.1 Summary
		11.3 Data
		11.4 Measurement of Economic Growth and Poverty
		11.5 Methodology
			11.5.1 Model and Estimation: Islamic Banking Development and Poverty
			11.5.2 Model and Estimation: Islamic Banking Development and Economic Growth
		11.6 Conclusion
		References
	Chapter 12: Alleviating Poverty Through Islamic Microfinance: Factors and Measures of Financial Performance and Roles of Islamic Values and Financial Policies
		12.1 Introduction
		12.2 Literature Review
			12.2.1 The Theory of Informal Credit Market
			12.2.2 Financial Inclusion and Alleviation of Poverty Issues
			12.2.3 Roles of BMT in Indonesia
		12.3 Methodology
			12.3.1 Data
			12.3.2 Method
			12.3.3 Empirical Model
		12.4 Results and Findings
		12.5 Conclusion
		References
	Chapter 13: Achieving Sustainability in Sudan Through Microfinance and Mobile Banking
		13.1 Introduction
		13.2 Sudan Knowledge Economy Foundations
		13.3 ICT Development in East Asian Countries
		13.4 Total Factor Productivity Implications
		13.5 Sudanese Microfinance Sector
		13.6 Mobile Banking
		13.7 The Model of the Study
		13.8 Results and Discussion
			13.8.1 Microfinance Customer
			13.8.2 Microfinance Service Providers (MFPs)
			13.8.3 Interview Interpretation
			13.8.4 Empirical Findings Discussion
		13.9 Conclusion and Policy Implications
		References
	Chapter 14: Success Factors of the i-Taajir Micro-Entrepreneurship Model: Lessons for Islamic Banks and Muslim Universities
		14.1 Introduction
		14.2 CIE, IIUM-CIMB Islamic Entrepreneurship Program
		14.3 The Partners in i-Taajir
		14.4 The Objectives of i-Taajir
		14.5 The i-Taajir Logo
		14.6 i-Taajir Organizational Structure
		14.7 Functions of the Executives
			14.7.1 Planning
			14.7.2 Organizing
			14.7.3 Controlling
			14.7.4 Selection of Participants
			14.7.5 The Soft Launch for Selecting Potential Participants
			14.7.6 Training
			14.7.7 Preparation of Business Proposals
			14.7.8 Preliminary and Final Presentations
			14.7.9 Selection of Successful Candidates for Award of Contracts
			14.7.10 Financing Modes
			14.7.11 Launching for the Award of Contracts to Successful Candidates
			14.7.12 Summary of i-Taajir Financing Processes
		14.8 Conclusion
		References
	Chapter 15: An Empirical Study on the Role of Islamic Microfinance in Enhancing Financial Inclusion in Bauchi State, Nigeria
		15.1 Introduction
		15.2 Literature Review
			15.2.1 Concept of Microfinance
			15.2.2 Concept of Islamic Microfinance
			15.2.3 Concept of Financial Inclusion
			15.2.4 Microfinance in Nigeria
			15.2.5 Empirical Literature
		15.3 Research Methodology
			15.3.1 Population
			15.3.2 The Sampling Technique and Sample Size
			15.3.3 Model Specification
			15.3.4 Methods of Data Collection
			15.3.5 Techniques of Data Analysis
		15.4 Findings and Discussions
			15.4.1 Socio-economic Characteristics of the Respondents
			15.4.2 Correlation Analysis
		15.5 Conclusion and Recommendations
		References
Index