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Article
Publication date: 29 November 2018

Halima Begum, A.S.A. Ferdous Alam, Md Aslam Mia, Faruk Bhuiyan and Ahmad Bashawir Abdul Ghani

Though microfinance has been working for many years as a tool to eradicate poverty from its root, most of the least developed and developing countries are yet to…

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Abstract

Purpose

Though microfinance has been working for many years as a tool to eradicate poverty from its root, most of the least developed and developing countries are yet to significantly alleviate it from the society. The purpose of this paper is to focus on Shariah-based microfinance products in the context of sustainable poverty alleviation approach and provide them financial benefits to enhance their livelihoods.

Design/methodology/approach

Here, this qualitative study critically analyzes the basics of the sustainable Islamic microfinance to exterminate the level of poverty.

Findings

Islamic microfinance is a more ethical practice than the traditional motives of profit maximization, and it encourages extending the time of repayment if the debtors are in hardship. In some case, it suggests to give charity if the creditor has capability.

Research limitations/implications

Most importantly, research scholars and experts have already criticized the concept of conventional microfinance on the basis of various points, especially for its high rate of interest.

Social implications

Islamic microfinance is provided with a view to fulfill two tools simultaneously, i.e., social and financial inclusion. In this case, credits and Zakah can be given to the extreme poor people for satisfying basic needs. In terms of social responsibility, Islam encourages the people to be soft in case of collecting the lending money.

Originality/value

The study discoursed that sustainable Islamic Microfinance (IM) may be a promising future option to draw the attention of the religiously sensitive people toward the Shariah-based microfinance which can, in turn, mitigate the poverty level.

Details

Journal of Economic and Administrative Sciences, vol. 35 no. 3
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 11 June 2018

Md Aslam Mia

The purpose of this paper is to measure and track the evolution of market concentration and competition in the microfinance industry in Bangladesh by employing both the…

Abstract

Purpose

The purpose of this paper is to measure and track the evolution of market concentration and competition in the microfinance industry in Bangladesh by employing both the structural and non-structural measurement techniques.

Design/methodology/approach

By using a unique panel data set generated from the microcredit regulatory authority (MRA) annual reports, the sample includes 169 microfinance institutions (MFIs) and covers the period 2009-2014. The authors employed the Herfindahl-Hirschman index (HHI) and concentration ratio (CR) (largest 3, 8 and 20 MFIs) as structural measurement techniques and the Lerner index as a non-structural measurement technique. In addition, four different market indicators are used as representatives of deposit and credit markets to better explain the evolution of market concentration.

Findings

The results of HHI indicate that the sector is moderately concentrated and currently transitioning to an unconcentrated market. However, based on CR, the industry is still dominated by a few large MFIs. The Lerner index (non-structural approach) also confirmed that the level of competition is relatively high and likely to follow an inverted U-shape during the study period.

Practical implications

The findings of this study will enhance our understanding of the market structure in the Bangladesh’s microfinance industry so as to inform important policy prescriptions. The results also provide impetus to the relatively young MRA to nurture competition in the market; simultaneously, the findings prompt management of the MFIs to cope with a competitive market environment.

Originality/value

This study is one of the first of its kind that includes a large data sample of microfinance market for a single country by employing both structural and non-structural measurement approaches.

Details

International Journal of Social Economics, vol. 45 no. 6
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 1 December 2021

Mohammad Nourani, Md Aslam Mia, Md. Khaled Saifullah and Noor Hazlina Ahmad

Uncontrollable brain drain (employees’ turnover) has been found to hamper humanitarian and sustainable objectives of socially oriented organizations. Hence, this study…

Abstract

Purpose

Uncontrollable brain drain (employees’ turnover) has been found to hamper humanitarian and sustainable objectives of socially oriented organizations. Hence, this study aims to explore the roles of gender and organizational-level factors on the rate of employees’ turnover in microfinance institutions (MFIs).

Design/methodology/approach

The study used an unbalanced panel data of 235 MFIs spanning the period 2010–2019. Based on the availability of the required data set on the World Bank catalogue (in collaboration with Microfinance Information Exchange-MIX Market), this study covers four South Asian countries, namely, Bangladesh, India, Pakistan and Sri Lanka. Then, the authors analyzed the data using the conventional panel data regression techniques (e.g. fixed effects model and random effects model).

Findings

The regression results revealed that women leaders (board members) could significantly reduce the employee turnover rate of MFIs. Although the efficiency wage hypothesis is supported in this study, it depends on the profit orientation of the MFIs. This study also confirmed that financial sustainability and donations have helped MFIs to reduce their employees’ turnover, which reiterates the image and brand value effect of MFIs. Moreover, the overall gender development and legal status (e.g. Bank and Non-Bank Financial Institutions) have also been found to have an effect on employees’ turnover based on the sub-sample analysis.

Originality/value

To the best of the authors’ knowledge, the study is among the first to investigate the impact of gender and institutional characteristics on employees’ turnover based on a large and recent panel dataset from selected South Asian countries.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

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Article
Publication date: 9 July 2020

Abu Hanifa Md. Noman, Che Ruhana Isa, Md Aslam Mia and Chan Sok-Gee

This study aims to examine the impact of activity restrictions in shaping the risk-taking behaviour of banks through the channel of competition in different economic conditions.

Abstract

Purpose

This study aims to examine the impact of activity restrictions in shaping the risk-taking behaviour of banks through the channel of competition in different economic conditions.

Design/methodology/approach

The authors use a dynamic panel regression method, particularly a two-step system generalised method of moments to address the risk-taking persistence of banks and endogeneity of activity restrictions and competition with banks’ risk-taking using financial freedom and property rights as instrumental variables. Activity restrictions are computed by constructing an index based on the survey results of Barth et al. (2001, 2006, 2008 and 2013a). Competition is measured by the Panzar–Rosse H-statistic and risk-taking behaviour are measured by non-performing loan ratio and lnZ-score. In the investigation process, the authors control bank characteristics – size, efficiency, ownership and loan composition and macroeconomic factors – gross domestic product growth and inflation, and use 2,527 bank-year observations from 180 commercial banks of Association of the Southeast Asian Nations-five countries over the 1990–2014 period.

Findings

This study finds that activity restrictions exacerbate the risk-taking behaviour of the banks leading to changes in the channel of competition because of the “risk-shifting effect” of competition. The finding is robust by considering the financial crisis and alternative specifications.

Research limitations/implications

This study contributes to bank literature and policy formulation regarding the effect of activity restrictions on the risk-taking behaviour of banks, which is an issue of concern amongst bank regulators, policymakers and academics, especially in the aftermath of the 2008–2009 global financial crisis.

Practical implications

Understanding how the competition plays a role in the relationship between activity restrictions and the risk-taking of banks in different economic situations.

Originality/value

This study provides new insight into the bank literature by investigating the moderating role of competition on activity restrictions and the risk-taking behaviour of banks in a different economic environment.

Details

Journal of Financial Regulation and Compliance, vol. 29 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

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Article
Publication date: 11 September 2019

Kuperan Viswanathan and Sulaman Hafeez Siddiqui

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207

Abstract

Details

Journal of Economic and Administrative Sciences, vol. 35 no. 3
Type: Research Article
ISSN: 1026-4116

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