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1 – 10 of 332Rashed Jahangir, Mehmet Bulut and Yusuf Dinc
This study aims to investigate the evolvement of the concept and practice of the Rotating Savings and Credit Association (ROSCA) from informal fund collection for indivisible…
Abstract
Purpose
This study aims to investigate the evolvement of the concept and practice of the Rotating Savings and Credit Association (ROSCA) from informal fund collection for indivisible durables to real property acquisition under the interest-free SBF model by analyzing the previously conducted research that focused on the concept in terms of names, forms, and natures.
Design/methodology/approach
A PRISMA-compliant systematic literature review is adopted to ascertain the most relevant studies from various sources and analyze the extracted data or items to accomplish the research objective. Besides, bibliometric network, thematic, and statistical analysis are also applied to bolster the findings acquired from the systematic review. Furthermore, this study mathematically formulates and introduces the customized PRISMA systematic flowchart.
Findings
The results reveal that the concept of ROSCA has evolved over the years from informal to formal, micro to macro, individual to institutional, social to business, and fund collection for purchasing household items to real property acquisition since 1962. In this process, the focus area of the research has been shifted from characteristics, operation, and economics to law; source of funds, and history to social; benefits and contribution to digital, risk, and savings behaviour. It is noticed that the majority of the study are Africa-centric, followed by Asia; academic discussion on the ROSCA covers most of the social and economic arena, except the real property acquisition aspect. However, the SBF concept fills up this gap by introducing a real-property-acquisition-centric ROSCA model. The authors provide future agendas regarding focus areas that researchers may consider to develop the SBF concept.
Originality/value
The study focuses on the evolvement of a savings-based model. No study concentrates on the evolution process of the model from ROSCA to SBF; in fact, no conspicuous academic study is found regarding the systematic review of ROSCA in the literature archive.
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Yusuf Dinç, Rashed Jahangir, Ruslan Nagayev and Fahrettin Çakır
The emerging markets have been witnessing a remarkable revival of rotating savings and credit associations (ROSCAs) serving as alternative informal financing and investment…
Abstract
Purpose
The emerging markets have been witnessing a remarkable revival of rotating savings and credit associations (ROSCAs) serving as alternative informal financing and investment platforms, also known as savings-based finance (SBF) in Turkey. The purpose of this study is to present the SBF model mathematically, analyse the performance of the SBF sector and propose a new Sharīʿah-compliant SBF model for the acquisition of durables.
Design/methodology/approach
The paper thoroughly reviews the concept and practice of ROSCA across the globe, mathematically models and empirically analyses the performance of Turkish SBF companies using a unique data set.
Findings
The study formulates a two-person SBF model and proposes a Mudarabah-Wakalah hybrid model with a new investment feature. It is found that the concept of ROSCA is being operationalized in 105 countries across the globe under different names with slight business model modifications. The research also reveals that the demand for financing of durables in Turkey significantly increased in recent years with the demand for housing is twice greater compared to vehicles. Most importantly, a strong significant inter- and intra-comovement is observed between these durables implying that the success of the sector in one segment has attracted the customers to other SBF products. It shows that the SBF institutions can effectively serve as the alternative financing houses for pooling savings and financing the durables, and they have strong potential to capture a larger financial market share in Turkey and even globally.
Originality/value
The study constructs mathematical models and proposes a new investment wing to an existing SBF wealth fund.
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Elsa Bawani Satkunasingam and Bala Shanmugam
To provide arguments in favour of legalising rotating savings and credit associations (ROSCAs) as they play an important role in savings and credit for women in Malaysia.
Abstract
Purpose
To provide arguments in favour of legalising rotating savings and credit associations (ROSCAs) as they play an important role in savings and credit for women in Malaysia.
Design/methodology/approach
The paper refers to previous studies on ROSCAs in Malaysia and extracts information that shows that ROSCAs are used mostly by women as a method of forced‐savings, credit and insurance against uncertainties. It suggests different methods that can be used to make ROSCAs more efficient. Finally, it provides suggestions for amendments to existing legislation which will not interfere with the social structure that supports ROSCAs, yet permit participants to sue defaulters.
Findings
The findings show that ROSCAs are widely practised in Malaysia especially in the rural and suburban areas. The participants are mostly women from middle income and low‐income groups who used it as a form of savings or credit. The benefits of permitting ROSCAs outweigh the risks. Legalising ROSCAs will not remove the benefits but will substantially reduce the risks.
Originality/value
This paper provides arguments to legalise ROSCAs in Malaysia and provides suggestions to ensure greater efficiency and a lower default rate. It also suggests amendments to the legislation to enable participants to take quick and cheap legal action against defaulters.
Several indigenous credit and savings schemes have been accredited recently in developing countries for the benefit of households and entrepreneurs alike. Famous among them are…
Abstract
Purpose
Several indigenous credit and savings schemes have been accredited recently in developing countries for the benefit of households and entrepreneurs alike. Famous among them are the Rotating Savings and Credit Associations (ROSCAs) that exist in almost all continents currently. The rapid development of ROSCAs and their varied structures in many countries have been the subject of numerous studies. What has not been thoroughly analysed is the optimum size of these associations and the fact that lending and borrowing is without interest. The aim of this paper is to present a model that would determine the optimum size of ROSCAs and deal with the following issues: how the group size varies with changes in the income level of the members, the demand for the loan, the size of the collected loan and its duration. Further, the question of whether or not lending to the association in return for obtaining larger sums is a violation of the qarḍ (loan) contract is dealt with, and several Sharīʿah compatible formulations are provided.
Design/methodology/approach
Economic analysis has been applied to show the optimum size of Qarḍ Ḥasan Associations (QHAs), which are the Sharīʿah-compliant equivalent of ROSCAs, and the Sharīʿah rules of the qarḍ contract to illustrate the legitimacy of group lending.
Findings
The major findings of this study are determination of the optimum size of QHAs, the factors that affect the size and suggestion of alternative legal forms for group financing.
Research limitations/implications
Inaccessibility to sources of data to test the hypothesis that has been put forth is the main difficulty encountered when conducting research on the subject.
Practical implications
The paper concludes that the development of informal interest-free ROSCAs in both Muslim and non-Muslim countries is an efficient informal microfinance scheme and that it is compatible with Sharīʿah rules.
Originality/value
The optimum size of ROSCAs and QHAs has been presented in this paper.
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Guided by the institutional theory of savings, the purpose of this study is to assess the institutional elements of rotating, savings and credit associations (ROSCAs) that enable…
Abstract
Purpose
Guided by the institutional theory of savings, the purpose of this study is to assess the institutional elements of rotating, savings and credit associations (ROSCAs) that enable participants to save.
Design/methodology/approach
The study used data from in-depth qualitative interviews (N = 10) conducted among the ROSCA group leaders from African immigrant communities in the USA.
Findings
The primary goal for joining the ROSCA group among participants is to achieve economic stability. The results of the study postulate that, through institutional mechanisms and social networks, ROSCAs create an environment for families to save and invest. The emphasis on the concept of “you cannot save alone” underscores the importance of supportive structures to enable low-income households to save. Although “alternative savings programs” such as ROSCAs are imagined as something that less well-to-do persons use, the findings from this study demonstrate that such strategies also appeal to some people with higher socioeconomic status. This appeal and utility speaks to the importance of ROSCAs as an institutional response, rather than just an informal arrangement among persons known to each other.
Research limitations/implications
It is prudent to bear in mind that the study sample is not nationally representative, and therefore, the results presented cannot be generalized to immigrants across the country. However, as one of the few ROSCA studies in the USA, the findings from this study make generous contributions to the immigrants’ savings and ROSCA practices literature.
Practical implications
ROSCAs could be used as a bridge to the formal financial institutions. Non-profit agencies working with these communities could work with these groups to report ROSCA payments to the major credit bureaus, to help them build a credit line in their new country.
Originality/value
Previous studies of ROSCAs have assessed ROSCAs as community support systems and social networks. The current study has analyzed ROSCAs from an institutional perspective by examining the institutional characteristics of ROSCAs comparable to the institutional determinants of savings that enable savings among the participants.
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Iskandar Waini, Farah Nadzirah Jamrus, Natalia C. Roșca, Alin V. Roșca and Ioan Pop
This study aims to investigate the dual solutions for axisymmetric flow and heat transfer due to a permeable radially shrinking disk in copper oxide (CuO) and silver (Ag) hybrid…
Abstract
Purpose
This study aims to investigate the dual solutions for axisymmetric flow and heat transfer due to a permeable radially shrinking disk in copper oxide (CuO) and silver (Ag) hybrid nanofluids with radiation effect.
Design/methodology/approach
The partial differential equations that governed the problem will undergo a transformation into a set of similarity equations. Following this transformation, a numerical solution will be obtained using the boundary value problem solver, bvp4c, built in the MATLAB software. Later, analysis and discussion are conducted to specifically examine how various physical parameters affect both the flow characteristics and the thermal properties of the hybrid nanofluid.
Findings
Dual solutions are discovered to occur for the case of shrinking disk (λ < 0). Stronger suction triggers the critical values’ expansion and delays the boundary layer separation. Through stability analysis, it is determined that one of the solutions is stable, whereas the other solution exhibits instability, over time. Moreover, volume fraction upsurge enhances skin friction and heat transfer in hybrid nanofluid. The hybrid nanofluid’s heat transfer also heightened with the influence of radiation.
Originality/value
Flow over a shrinking disk has received limited research focus, in contrast to the extensively studied axisymmetric flow problem over a diverse set of geometries such as flat surfaces, curved surfaces and cylinder. Hence, this study highlights the axisymmetric flow due to a shrinking disk under radiation influence, using hybrid nanofluids containing CuO and Ag. Upon additional analysis, it is evidently shows that only one of the solutions exhibits stability, making it a physically dependable choice in practical applications. The authors are very confident that the findings of this study are novel, with several practical uses of hybrid nanofluids in modern industry.
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Natalia C. Roşca, Alin V. Roşca and Ioan Pop
This paper aims to present the steady dual solutions on three-dimensional flow and heat transfer of nanofluid over a permeable non-linearly shrinking surface with two-order…
Abstract
Purpose
This paper aims to present the steady dual solutions on three-dimensional flow and heat transfer of nanofluid over a permeable non-linearly shrinking surface with two-order velocity slips conditions. Boundary layer assumption is considered in the mathematical modelling. Authors comprehend from previous studies and papers that the shrinking surfaces are extremely important in current engineering and environmental systems.
Design/methodology/approach
Using appropriate similarity variables, the full partial differential equations (PDF) are modified into a specific set of ordinary (similar) differential equations (ODE). The resulting non-linear ordinary differential system is then solved both analytically for some particular cases and numerically for the general case using the function bvp4c from MATLAB for characteristic values of the parameters which govern the equations. The transformed mathematical model is analysed using the bvp4c procedure. Based on the given assumptions, this study is able to produce multiple solutions of the problem.
Findings
The ordinary (similarity) differential equations have two branches solutions, upper and lower branch solutions, given some interval of shrinking and velocity slip parameters. The authors consider here a temporal stability analysis, as they want to establish which of the solutions are stable and which are not. In a distinct paragraph, the authors discuss in detail and present in a graphical manner the effects of shrinking and second-order slip flow model on the skin friction coefficient, surface wall heat flux and dimensionless velocity and temperature profiles. The analysis reveals that the second order slip has a big influence on the flow and heat transfer characteristics.
Originality/value
The present discoveries are unique and truly new for the research of the three-dimensional stretching/shrinking forced convection flow and heat transfer nanofluids. The nanofluid is a water-based nanofluid (H2O), which contains one type of nanoparticles, namely, copper (Cu). Of course, the analysis can be further extended considering other types of nanoparticles such as alumina (Al2O3). The authors assume that the thermal equilibrium is reached for the base fluid together with the suspended nanoparticles and that the nanoparticles are uniform in dimension and form.
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Natalia C. Roşca, Alin V. Roşca and Ioan Pop
The purpose of this paper is to theoretically investigate the unsteady separated stagnation-point flow and heat transfer past an impermeable stretching/shrinking sheet in a copper…
Abstract
Purpose
The purpose of this paper is to theoretically investigate the unsteady separated stagnation-point flow and heat transfer past an impermeable stretching/shrinking sheet in a copper (Cu)-water nanofluid using the mathematical nanofluid model proposed by Tiwari and Das.
Design/methodology/approach
A similarity transformation is used to reduce the governing partial differential equations to a set of nonlinear ordinary (similarity) differential equations which are then solved numerically using the function bvp4c from Matlab for different values of the governing parameters.
Findings
It is found that the solution is unique for stretching case; however, multiple (dual) solutions exist for the shrinking case.
Originality/value
The authors believe that all numerical results are new and original, and have not been published elsewhere.
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Ioan Pop, Natalia C. Roşca and Alin V. Roşca
The purpose of this paper is to study the effects of MHD, suction, second-order slip and melting on the stagnation-point and heat transfer of a nanofluid past a…
Abstract
Purpose
The purpose of this paper is to study the effects of MHD, suction, second-order slip and melting on the stagnation-point and heat transfer of a nanofluid past a stretching/shrinking sheet.
Design/methodology/approach
Using appropriate variables, the governing partial differential equations were transformed into ordinary (similarity) differential equations, which are then solved numerically using the function bvp4c from Matlab.
Findings
It is found that dual (upper and lower branch) solutions exist for some values of the governing parameters. From the stability analysis, it is found that the upper branch solution is stable, while the lower branch solution is unstable. The sample velocity, temperature and concentration profiles along both solution branches are graphically presented.
Originality/value
The results of the paper are new and original with many practical applications of nanofluids in the modern industry.
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Abraham Falola, Ridwan Mukaila and Kafilat Ololade Abdulhamid
The problem of inaccessibility of finance for farm investment is a common phenomenon among farmers, especially the rural dwellers. Thus, there is a need to know how the…
Abstract
Purpose
The problem of inaccessibility of finance for farm investment is a common phenomenon among farmers, especially the rural dwellers. Thus, there is a need to know how the accessibility of informal finance can be increased to increase farm investment. Therefore, this study evaluates farmers’ access to informal finance and its contribution to farm investment among rural farmers in Northcentral Nigeria.
Design/methodology/approach
A three-stage random sampling technique was employed to select 160 farmers. Primary data collected were analysed with descriptive statistics and the Heckman selection model.
Findings
The study revealed that cooperative society is the major informal means of loan acquisition used by the farmers followed by Rotational Savings and Credit Associations (RoSCAs). Informal loans contributed to agricultural investment through the various operational activities involved in production. Factors influencing farmers’ access to informal loans were the age, farm size and income of the farmers. Interest charged, farmers' age, farming experience, household size, education and loan duration were the drivers of the amount borrowed from the informal financing sector.
Practical implications
The findings of the study call for policies that will sustain informal financial institutions in developing economies, like Nigeria. Thus, the government through its regulatory agencies should assist informal finance providers with the necessary resources to achieve more goals. This is because the informal credit lenders help in bridging financial gaps created by formal financial institutions, such as commercial banks.
Originality/value
Unlike the previous research studies, this study investigated the driving factors of the amount borrowed from informal finance and its use in farm investment.
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