Islamic Microfinance in Sri Lanka by Faraaz Shaul Hameed

Top 20 FREQUENT WORDS

islamic 500 banks 323 bmt 274 bprs 272 banking 242 rural 212 financial 208 indonesia 196 cooperatives 170 bpr 165 sector 165 commercial 156 assets 126 loan 122 average 112 deposits 110 institutions 109 conventional 108 loans 101 microfinance 101

DOCUMENT KEY POINTS

doctor hans dieter seibel with contributions from wahyu dwi agung responsible doctor brigitte klein person which can be contacted at federal ministry for economic cooperation and development hendrik denker september revised august
publisher deutsche gesellschaft fuer technische zusammenarbeit gtz gmbh dag hammarskj ld weg eschborn internet http www dotdivision economic development and employment sector project financial systems development e mail financial

origins and development of islamic commercial and rural banks
table of contents table of contents abstract v kurzfassung ix introduction

summary references annex contacts annex questionnaire islamic microfinance institutions in indonesia annex list of bprs june appendix financial infrastructure appendix development of conventional and islamic rural banks in indonesia appendix evolution and structure of islamic finance in indonesia appendix islamic rural banks bprs appendix islamic cooperatives ii
postscript islamic finance in the province of aceh after the tsunami

usd idr exchange rates year end year average as of may note on transcriptions key islamic banking terms are based on islamic law and written in arabic
exchange rate to the us average exchange rate median to the us end of year financial deepening m gdp in

most of the lending is trade financing at a fixed margin murabahah which differs little from conventional banking except that it requires two bank contracts one with the seller and one with the borrower to whom the bank sells the commodity

on the basis of years of experience with islamic finance in indonesia decision makers in favor of promoting islamic financial services are now confronted with two major options either to focus on islamic commercial banks in indonesia and assisting them to establish branch networks with islamic microfinance products or to reassess in a participatory process the challenges and realistic opportunities offered by islamic rural banks and cooperatives taking into consideration the lack of broad popular demand be it from the poor or the non poor and the lack of dynamic growth
islamic unlike conventional rural banks have failed to prove themselves as effective and efficient providers of microfinance services and unsupervised islamic cooperatives like their conventional counterparts are an outright menace to their shareholders and depositors who risk losing their money

building strong islamic financial institutions in aceh could be of enormous benefit to the reconstruction and development of the province and aceh could as a result be the province that benefits the most from the results of this study
if the reconstruction efforts are to lead to sustainable development rural finance and microfinance will have an important role to play

der gr te teil des kreditgesch fts besteht in handelsfinanzierungen zu einem festen aufschlag murabaha und unterscheidet sich nur wenig von konventionellen krediten au er dass jeweils zwei vertr ge erforderlich sind einer mit dem lieferanten von dem die bank die ware erwirbt und einer mit dem enderwerber und kreditnehmer

entscheidungstr ger sehen sich nach dreizehnj hriger erfahrung nun zwei optionen gegenueber a sich entweder auf islamische gesch ftsbanken zu konzentrieren und sie bei der einfuehrung islamischer mikrofinanzabteilungen und produkte zu unterstuetzen b oder in einem partizipatorischen prozess die herausforderungen und realen chancen islamischer l ndlicher banken und genossenschaften einer neubewertung zu unterziehen unter beruecksichtigung des mangels an breiter nachfrage und an wachstumsimpulsen
gesch ftsbanken die ein zweigstellennetz mit islamischen mikrofinanzdienstleistungen aufbauen wollen sollten auf der reichhaltigen mikrofinanzerfahrung indonesiens aufbauen insbesondere der microbanking division der bank rakyat indonesia einem der erfolgreichsten mikrofinanzprogramme in entwicklungsl ndern

kurzfassung postscriptum aufbau islamischer mikrofinanzinstitutionen in der provinz aceh nach dem tsunami die zerst rungen des tsunami im dezember haben am st rksten die provinz aceh in indonesien getroffen
die bev lkerung der provinz aceh fuehlt sich in hohem ma e den werten des islam verpflichtet darunter den grunds tzen des islamischen finanzwesens

the main sources of information were the islamic banking directorate of bank indonesia asosiasi bank syariah indonesia asbisindo the islamic banking association pusat inkubasi bisnis usaha kecil pinbuk the agency for the promotion of islamic cooperatives the ministry of cooperatives and small enterprises moc and case studies of five islamic rural banks bprs and four islamic savings and credit cooperatives bmt

for example there are the units of the bri microbanking division and the bpr as part of the formal financial sector various types of cooperatives and the so called village banks bank desa which are part of the semiformal financial sector outside the regulation and supervision of the financial authorities and a wide variety of self help groups channeling groups and rotating savings and credit associations roscas known locally as arisan as part of the informal financial sector
in a narrower sense microfinance institutions loosely comprise a variety of semiformal financial institutions targeted by the draft law of september on lembaga keuangan mikro lkm which literally means microfinance institutions

in the context of financial liberalization the law was enacted in an effort to rationalize the highly complex rural finance sector with the objective of bringing existing institutions under the umbrella of prudential regulation and supervision providing a framework for the establishment of act xxx of draft dated
the banking law in indonesia recognizes two types of banks commercial banks bank umum bu literally universal banks and rural banks bank perkreditan rakyat bpr literally people s credit banks

by the total number was the number of new bpr had surged to while the number of converted bpr had declined to indicating that a good number of them were unable to live up to the bank indonesiastandards
however it came as a surprise to many that the asian financial crisis not only failed to impede further growth but if anything actually inspired further development with additional bpr established in in and in averaging per year during the three main crisis years

this means that real growth rates of total assets and deposits of the commercial banking sector were negative during that time period while all three growth rates of the rural banking sector were highly positive in real ter miss
financial sector framework there are still large numbers of rural banks expected to comply with registration requirements and obtain a bpr license but unable to come up with the required capital

in microfinance the policy environment evolved rapidly during the s and s with the following five main developments a full interest rate deregulation and elimination of credit ceilings in preceded by the oil crisis of which gave birth to the reform of the bri unit system in
macroeconomic and policy framework there is a considerable correspondence between today s policy concerns and those at the beginning of the th century an emphasis on demand oriented financial services institutional viability sustainability of the system as a whole as well as experimentation to expand services to the poor with individual and group technologies

as islamic banks and their clients are partners both sides of the financial intermediation are based on sharing risks and gains the transfer of funds from clients to the bank depositing is based on revenue sharing and is usually calculated ex post on a monthly basis the transfer of funds from the bank to the clients is based on profit sharing lending financing either at a mutually agreed upon ratio as in the case of mudarabah or at a mutually agreed upon fixed rate

ajaar lease and hire purchase a contract under which the bank ijarah leases equipment to a customer for a rental fee at the end of ijarah mutahia bittamlik the lease period the customer will buy the equipment at an a i i i a agreed price minus the rental fees already paid
financing products profit sharing financing products musharakah equity participation investment and management from all musyarakah partners profits are shared according to a pre agreed ratio a i i i ci a losses according to equity contributions

a i i Oi a mudarabah deposit products based on revenue sharing between a i i i i i a depositor and bank including savings products that can be withdrawn at any time and time deposit products
qard al hasanah unremunerated deposit products usually for charitable a i i i a purposes widespread in iran but not found in indonesia

there are three types of islamic banking institutions of which the first two fall into the legal category of commercial banks full fledged islamic commercial banks bank umum syariah bus islamic banking units of commercial banks unit usaha syariah uus islamic rural banks bank perkreditan rakyat syariah bprs the indonesian banking law recognizes two types of banking institutions commercial banks and rural banks bpr with widely differing minimal capital requirements
since when muhamadiyah began to provide guidance and supervision through pusat pengembangan ekonomi muhammadiyah ppem one of its departments these financial cooperatives have been grouped into two categories bmt and baitul tamwil muhamadiyah btm bmt baitul maal wat tamwil comprising about of islamic cooperatives affiliated to nadhatul ulama nu which is with almost million members the largest islamic mass organization in indonesia

on the whole bank indonesia states that there is a lack of efficient institutional structure supporting efficient sharia banking operations and suggests the need to develop the following a sharia auditor to ensure the compliance of sharia banks with sharia principles a communication board fkpps to enable effective coordination of efforts to improve public awareness and education with regard to sharia banking an institution for sharia financing insurance to provide sharia banks with financial protection against fraudulent practices by recommended customers

phase period number of islamic rural banks gradual expansion slowdown of expansion stagnation similarly during when islamic commercial banks doubled their assets the number of bprs grew by only one unit and their total assets by a mere in real terms
as of may one new sharia commercial bank via the conversion of bank tugu into bank mega syariah five sharia district development bank units bpd four private commercial bank units and fifteen bprs were in the process of being established

in addition there are eight islamic banking units bank ifi bank negara indonesia bank jabar bank rakyat indonesia bank danamon bank bukopin bank internasional indonesia and one foreign bank hsbc

after when pinbuk started promoting islamic cooperatives under the new label of bmt they increased in number over several stages an initial period of moderate growth up to the promotion of rapid growth by pinbuk starting in with large jumps in numbers during the crisis years of and a slowing down of growth in followed by stagnation and then a slight decline as table

phase period number of bmt initial growth rapid growth promoted by pinbuk june slowing down of growth stagnation and decline data for are based on oral information provided by pinbuk
evolution and structure of islamic finance in indonesia table

conventional and islamic rural banks bpr and bprs a comparison conventional and islamic rural banks have evolved over a similar time span in a predominantly islamic country conventional rural banks since islamic rural banks since
at what pace did this take place in a predominantly islamic country and with what result during the year period lasting from to the total bpr sector grew to institutions comprising conventional bpr and bprs

during the three year period december to december the total assets of the bpr sector grew nominally by and the assets of the bprs by despite the fact that the total number of bpr declined by from to while the number of bprs increased by from to during that period
the decline in the share of bprs since is due to wide discrepancies in the growth rates of bpr and bprs in recent years as shown in table

while both are mostly established by wealthy local people the owners of bpr are commercially oriented towards increasing their wealth while the owners of bprs have a social mission combined with the intention to at least cover their costs
two problems have resulted from the way the bprs have defined their mission on the demand side many customers have a mistaken concept of sharia banking namely that there are low or no interest rates or profit margins

lack of management skill and dynamics are considered the only major proble miss control and supervision internal control is by absentee commissioners whose activities are limited to receiving monthly reports and monthly or quarterly visits either the commissioners visit the bank or the bank visits the commissioners a sometimes in faraway places

there is an ongoing discussion on how to adjust staff remuneration to the profit sharing principle of islamic banking with a basic salary to cover transportation and an advance plus a sharing of the profit between owners and staff according to an agreed upon ratio

if we assume that as in the case of assets the average number of borrowers of an bprs is of that of a bpr we arrive at a figure of and a total borrower outreach of all bprs of around
financial products for the poor and non poor under sharia banking there are two models of client selection i clients with existing businesses and successful operations for at least two years and ii new entrepreneurs without previous business experience

bn which is more than three times the size of the average bprs and above the size of the average bpr see appendix table
as an example bprs artha fisabilillah offers three mudharaba savings products all voluntary and withdrawable at any time which differ only by target group one remuneration free savings product for religious purposes and a fixed deposit product with different maturities

compared to bmi the first islamic commercial bank in indonesia bprs pay slightly more on deposits but charge three to four times as much for financing as bprs loans are far smaller in size and thus more costly and bprs on the whole are less efficient
qard al hasanah a financial product for the very poor for which the bank bears the full risk but receives no remuneration except an administrative fee of around exists only in theory

its objective is to develop islamic banking in indonesia by providing human resource development and technical assistance by ensuring operational standardization and by developing financial products by facilitating vertical and horizontal communication among islamic financial institutions and by offering advocacy and participation in policy dialogue

bank indonesia rcds arguing that the development of syariah banks not only depends on the legal framework and the moral values applied in the banks operations but also on society s demand for their products and services it commissioned interview studies in western and central java to find out whether such a demand exists or whether the lack of market demand for specifically islamic financial services might be one of the explanations for their slow growth
they also concur with the anecdotal observations of the adb team which included a number of bmt in their studies of mfis a and in one of them bmt al iman in pandeglang district in banten province interviewed three out of members who all stated that convenience was the main reason for their patronage

islamic rural banks bprs box reasons for the patronage of customers of bmt al imam pandeglang district three clients of the bmt were interviewed the first was a woman a primary school teacher who had come to make a small deposit into her savings account which had reached a balance of rp
one is a normal current account with a balance of rp and the other is a savings account designed to meet the annual needs of moslems during the idul fitri celebration in december when he expects to withdraw the full amount which by that time will have reached rp

an alternative which has evolved in developed countries such as germany is a delegated system of regulation and supervision in the hands of national and regional associations of financial cooperatives turned into local cooperative banks with their apex auditing federations which are in turn placed under the banking law and under the ultimate authority of a bank supervision agency
as government intervention in management and resource allocation stifled any spirit of autonomy and self help privately organized credit unions and large numbers of self help groups resisted being incorporated including the self help groups under bank indonesia s program linking banks and self help groups phbk

bri units adapted from appendix table the largest number of financial cooperatives are savings and credit units usp of the state run multipurpose cooperatives kud accounting for of all units of loans outstanding and of deposits
according to statistics from the moc the total number of ksp usp had grown to as of december which includes those credit unions and bmt which decided to register as cooperatives the data also include cooperatives which are inactive and have failed to report

financial cooperatives conventional and islamic units deposit deposit volume loan accounts loans outstanaccounts in in bn rp in ding in bn rp conventional cooperatives unit simpan pinjam usp saving credit coops ksp credit unions cu swamitra bukopin islamic cooperatives bmt total adapted from appendix table

bmt at taqwa in kemanggisan west jakarta was first established in as a precooperative under the name of baitul maal wat tamwil bmt at tawqa by four representatives of the mosque at tawqa
down from reported as of december to as of december a after having recorded exceptional growth rates during the crisis years of followed an additional case study of a bmt in metro lampung has been reported by adb supplementary appendix c p

compared to the number of registered ksp usp bmt are somewhat over represented on java sulawesi sumatra and west nusa tenggara and under represented on kalimantan and the smaller islands see appendix table
large declines in numbers are reported for jakarta west java and east java while numbers in central java and d

bmt at taqwa the largest cooperative also has the largest board comprising a sharia board of four a supervisory komisaris board of five a law and management board of four and an internal control board of one all of which meet monthly

as the average asset size of the bmt sector is one quarter the size of our four sample bmt a reasonable estimate of the average number of depositors per bmt in the sector might be around
in contrast bmt ibaadurrahman reports every one or two months to its local cooperative authority from which it has received recommendations and accountancy training it was last audited in

as the average asset size of the bmt sector is one quarter the size of our four sample bmt the average number of borrowers per bmt in the total sector can be estimated at around which would be over three times the size derived from table
bmt by asset category number rp rp rp rp rp billion million million million million billion in terms of total assets all four sample bmt are above the median of rp mn the largest with total assets of rp

financial services the question about the difference between islamic and comparable non islamic institutions evoked little response except in bmt ibaadurrahman which claims that profit sharing is more in the interest of the customers than interest taking that average profits are higher for both bmt and customers because of higher transparency and that customer relations are stronger because of specific suggestions how to improve the business in one case this reportedly led to an increase in assets from rp mn to rp mn
in contrast to the five sample bprs where murabahah a sales contract between bank and customer with a mutually agreed upon profit margin for the bank is by far the most important loan product accounting for unweighted the loan portfolio of the bmt is more balanced murabahah financings account for

affiliations and support pinbuk the most important promoter of islamic cooperatives is pinbuk the centre for micro enterprise incubation pusat inkubasi bisnis usaha kecil established in by the yayasan inkubasi bisnis usaha kecil yinbuk foundation as its operational arm
along with tctech tamwil computerization technology semarang and since with pt ussi in badang pinbuk has developed a software package for bmt divided into three categories single user for small scale bmts at the price of rp

pnm as of december had microfinance customers bpr and bprs out of a total of reportedly healthy rural banks ksp usp out of a total of healthy cooperatives and bmt out of a total of healthy islamic cooperatives

it has been registered with pinbuk since the first two are government projects the next two projects with commercial banks the fifth is an ngo project and the last two are projects with individual investors o p ker which has channeled rp bn from the moc since

bmt wira mandiri belongs to the pinbuk network and is an active participant
islamic cooperatives bmt btm but has received no services

after years of development of islamic rural banks and years of development of a regulated rural banking sector in indonesia islamic rural banks still constitute a minute part of the rural banking sector as well as of the total islamic banking sector with no growth prospects if current trends are extrapolated
however since bank indonesia officially recognized a dual banking system conventional and islamic in interest in islamic meso and macro finance has spread among commercial banks fuelled by low rates of non performing loans a not surprising perhaps given the attention paid by bankers to this new market segment and a more careful selection of borrowers

among the many reasons for the slowdown in development the following can be highlighted the lack of popular demand for islamic banking services absentee ownership the absence of a young dynamic management the lack of mastery of extremely complex islamic banking practices and emphasis on the informal sector and the poor to the neglect of more profitable market segments
islamic rural banks are plagued by numerous governance and management problems many have been established by absentee owners for moral reasons and are managed by retired conventional bankers who lack dynamism and islamic banking expertise a with dire consequences for the banks performance

to reassess in a participatory process the challenges and realistic opportunities of islamic rural banks and cooperatives taking into consideration the lack of broad popular demand and the lack of dynamic growth
assessment and recommendations we warn that fresh money pumped into the sector by donor or government agencies without effective regulation and supervision will contribute to their downfall rather than redemption as has been the case in the state supported cooperative sector

assessment and recommendations strengths and weaknesses was not part of this study however there was sufficient evidence to arrive at the conclusion that they are already standing on their own feet and are developing both in quantitative and qualitative ter miss nevertheless islamic banking with its variable and flexible ratios of revenue sharing with depositors and profit sharing with borrowers is excessively complicated and only commercial banks appear to be capable of acquiring the art of islamic banking by training young and dynamic people

associations may be strengthened to eventually replace a governmental agency like the ministry of cooperatives which in the framework of massive government interference under the previous political system seems to have had a more detrimental than constructive effect in terms of building self reliant healthy cooperatives
like islamic rural banks islamic cooperatives need strong associations and federations to provide a full range of support services to their members on a costcovering basis a much strengthened pinbuk is one of the organizations that may promote such associations or provide those services ad interim

all the inhabitants of aceh particularly those impoverished by the floods need access to sustainable financial institutions in order to deposit savings including relief benefits and to obtain credit
thereby aceh could become the province benefiting most from the results of this study on the positive and negative experience of islamic finance in indonesia

summary lack of a conducive sectoral framework for islamic cooperatives lack of prudential regulation of financial cooperatives lack of effective supervision of financial cooperatives market distortions resulting from access to subsidized sources of finance massive government interference in the past although there are some recent signs of relaxation the cooperative sector is in an undiagnosed state of ill health key question is there a chance for sustainable islamic cooperatives in indonesia

mandate and target group of islamic mfis helping the enterprising poor a in contrast to maximising profits from the most promising market segments special risks in islamic finance mis interpreting brotherhood and partnership as leniency and loan forgiveness resulting in loan delinquency due to unwillingness to repay a in contrast to seizing collateral in case of loan delinquency resulting in bankruptcy due to inability to repay
qard hasan interest free or profit free deposit products rare in indonesia are the purest expression objecting against interest taking riba a non existent in conventional banking qard hasan interestor profit free credit products are a pure form of social banking either for charitable purposes or for start up entrepreneurs without business experience and collateral a there is no equivalent in conventional banking collateral as proof of a serious business relationship a again a safeguard against risk

concluding assessment the performance of the islamic banks and banking units has motivated an increasing number of banks to announce the creation of islamic banking units continued growth may be expected in the islamic commercial banking sector the share of islamic commercial banks is a mere

islamic rural banks started to evolve only two years after conventional rural banks bpr came into existence but at very different speeds the number of conventional bpr reached in december the number of islamic bprs a in a predominantly muslim country while the number of conventional bpr grew at an average rate of banks per year and the number of newly established bpr at a rate of

financial services revenues of savings deposits are shared in the five sample bprs between clients and banks at ratios varying between institutions and clients the average ratio is resulting in an average return of
the total depositor outreach of the bprs sector may be estimated at or less than per bank total borrower outreach at around or per bprs

the volume of their services is negligible compared to conventional rural banks their growth in numbers has stagnated in recent years and their growth in assets has remained far behind that of conventional rural banks lack of popular demand for islamic banking services absentee ownership lack of young dynamic management lack of mastery of overly complex islamic banking practices and emphasis on the informal sector and the poor to the neglect of more profitable market segments are among the many reasons for their retarded development
summary concluding assessment after years of development of islamic rural banks and years of a regulated rural banking sector islamic rural banks constitute but a minute part of the rural as well as of the total islamic banking sector with little prospects of growth

the average number of loan accounts in the four sample bmt which are far above the national average in size is
summary regional distribution the majority of the bmt are located on java in but they are spread far more equally over western central and eastern java

comparing islamic with conventional financial cooperatives we can conclude that the whole cooperative sector has historically suffered from a lack of regulation and supervision paralleled by excessive government interference and subsidies which have distorted rural financial markets and undermined self help
microfin has established a network of bmt and channels project funds to a total of bmt and kopontren plus bprs it also tries to promote their institutional upgrading to mfis lkm or bprs

of the assets of the rural banking sector and their growth in recent years has been much slower than that of the conventional rural banks the number of bprs grew by
islamic commercial banks in setting up branch networks of islamic mfis may learn with good prospects from the rich experience of successful microfinance strategies and institutions within indonesia particularly the bri microbanking division one of the most successful microfinance programs in the developing world

postscript islamic finance in the province of aceh after the tsunami of all the areas devastated by the tsunami of december the province of aceh was the hardest hit
they should be fully financed through equity and savings deposits of members only healthy and wellsupervised cooperatives should be permitted to collect deposits from non members

html asian development bank adb march draft report rural microfinance indonesia bank indonesia bi the blueprint of islamic banking development in indonesia economic report on indonesia compilation of indonesian islamic banking regulations february may bi and direktorat perbankan syariah statistik perbankan syariah bi and research center on development studies rcds research on potency preference and society behavior toward syariah banking system in central java and yogyakarta provinces a executive summary
social strategies a from recipients of reparation payments to shareholders of microfinance institutions a study of the possible relations between reparations for victims of human rights abuses and microfinance in repairing the past reparations and transitions to democracy

ifad rome shg banking in india the evolution of a rural financial innovation and the contribution of gtz
references b indonesia ifad country programme evaluation working paper rural finance

guntur loji garut anton rechmat director bmt ibaadurrahman sukabumi west java ibu eti rusmaiati manager bmt wira mandiri j
annex contacts annex contacts organizations and persons met contact addresses asbisindo asosiasi bank syariah indonesia bi gd

hilna rizal finance administration ministry of cooperatives and small enterprises bidang pengembangan dan pengendalian jl
doctor alfred hannig program director fax doctor michael hamp a hannig cbn

id wahyu dwi agung syariah banking consultant internal controller bprs ariyah jaya depok ii bprsraya telcom
sudirman state owned corporation for small and medium fax enterprises salam pnm

annex questionnaire islamic microfinance institutions in indonesia annex questionnaire islamic microfinance institutions in indonesia name of institution locality district province tel
type of institution and legal status bprs bmt other b

delivery system number of branches and other units including head office number of staff number of loan officers service radius km to furthest customer a
do branches and sub branches function as profit centers c

financial services number of loan products number of savings products number of other financial products loan portfolio amount outstanding in million rp number of loan accounts number of active borrowers if available average loan size average loan processing time savings portfolio amount in million rp number of savings accounts number of savers if available average savings balance
market describe target population total number of clients percent farmers percent micro entrepreneurs percent salaried percent women percent below poverty line marketing of financial services as islamic finance

interest rates penalties for late payment minimum loan period maximum loan period installment schedule collateral guarantee requirements loan size tied to savings assessment of projects creditworthiness examination loan project monitoring
loan products loan products borrower category a e minimum loan size maximum loan size profit sharing margins nominal flat declining fees if any other effective p

savings products savings products compulsory fixed term withdrawable interest or substitute rate p
loan recovery policy relevance importance enforcement actual performance e

penyisihan penghapusan net loans facilities outstanding pembiayaan yg diberikan bersih net fixed assets aktiva tetap setelah dikurangi unpaid taxes hutang pajak other net assets aktiva lain lain bersih total assets jumlah aktiva savings and deposits of clients simpanan deposits of banks simpanan dari bank lain borrowing pinjaman other liabilities kewajiban lain lain total liabilities jumlah kewajiban paid up capital modal ditempatkan dan disetor penuh retained earnings of previous years laba tahun lalu profit of current year laba tahun berjalan total equity jumlah ekuitas total liabilities and equity jumlah kewajiban dan ekuitas
balance sheet cash at hand kas bank deposits giro tabungan deposito pada bank gross loans facilities outstanding pembiayaan yang diberikan kotor

beban marjin dan bagi hasil net income from financial operations jumlah pendapatan marjin dan bagi hasil other operational income jumlah pendapatan operasional lainnya
jumlah beban operasional lainnya personnel expenses in beban personalia di loan loss provisions included above penyusutan dan penyisihan di dalam operational profit laba operasional

performance loan recovery npl npf in loans written off in million rp loan loss ratio in profitability return on average assets in return on average equity in ratios equity liabilities in deposits liabilities in ldr loan to deposit fdr financing to deposit ratio in car capital adequacy in efficiency number of active borrowers per loan officers ocr bopo operational costs to revenue value of loans outstanding per loan officer npl npf non performing loans islamic non performing finance capital adequacy capital net loans or net financing loan loss ratio loans written off to average loans outstanding
annex questionnaire islamic microfinance institutions in indonesia

tolong menolong bermanfaat jan mar bandung jawa barat to at baleendah koperasi al ihsan may jun bandung jawa barat cooperation pt ltd
annex list of bprs june annex list of bprs june no legal body name of bprs date of date of kab kotamadya propinsi

al hidayah may jun pasuruan jawa timur koperasi untung surapati aug sep pasuruan jawa timur cooperation pt ltd
buana mitra perwira jun jun purbalingga jawa tengah pd local tanggamus may jun tanggamus lampung govt

for example in the case of the bri microbanking division it refers to outlets including cash offices of the unit desa now unit unit whereas in the case of bpr it refers to banks and excludes their branches
coop credit unions cu nil bmt nil nil swamitra bukopin nil nil non bank financial institutions village mfis bkd other mfis ldkp pawnshops total all institutions errors in percentage totals due to rounding

note double click on table to show column dec on screen appendix table development of islamic rural banks dec dec dec dec dec dec dec dec dec financing deposits total assets number of banks source islamic banking directorate bank indonesia
total assets million rp total rbs irbs share irbs to total

appendix evolution and structure of islamic finance in indonesia table deposits and loans by islamic commercial banks and banking units dec
total percent total amount rp

appendix islamic rural banks bprs appendix islamic rural banks bprs table regional distribution of bprs june province licensed bprs license number percent revoked java
revoked licenses total bprs table year of origin ownership and number of board members in five sample bprs bprs year of origin no

appendix islamic rural banks bprs table number of delivery units number of staff and service radius in five sample bprs bprs number of units number of staff loan officers service incl
wakalumi bangka average mean table number of clients by occupation sex and poverty category in four sample bprs bprs total no

musyarakah and mudarabah financing tend to be larger in volume either at the same mark up as murabahan as in bprs wakalumi or at almost half the rate as in bprs alwadi ah
by comparison charges no penalties on late payments but a so called administrative fee stated in terms of a nominal amount approximately of the amount overdue per month which cannot be claimed as income and is allocated to a social fund

appendix islamic rural banks bprs table balance sheet income statement and performance ratios of bprs artha fisabilillah amounts in million rp balance sheet activa cash at hand kas gross loans facilities outstanding pembiayaan yang diberikan kotor

appendix islamic cooperatives appendix islamic cooperatives table basic data on ksp usp december and december ksp usp sector ksp usp sector mean per ksp usp number of ksp usp number of members total assets
million rp source moc perkembangan ksp usp koperasi seluruh indonesia table year of origin members and number of board members in four bmt bmt year of origin no

the manager reports massive delays and defaulting which he attributes to a lack of knowledge and experience of management high management turnover weak controls by inexperienced supervisors weak compliance with sharia a lack of observance of prudential norms and a conflict of interest in lending resulting in so called buddy loans
fee for late payment minimum loan period in months maximum loan period in months installment schedule m m m m collateral guarantee requirements yes yes no no loan size tied to savings no table non performing loans and return on year end assets in four bmt in bmt npl roa yr end at taqwa

table balance sheet income statement and performance ratios of bmt at taqwa december amounts in million rp balance sheet cash at hand
m and a volume of bad debts to be written off of rp m the bmt is technically bankrupt

loans written off in million rp loan loss ratio in profitability return on year end assets in
appendix islamic cooperatives income statement income pendapatan income from financial operations

deutsche gesellschaft fuer technische zusammenarbeit gtz gmbh dag hammarskj ld weg eschborn germany t f e info gtz
de i www dot gtz

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AlHuda Material\islamic micro

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loan microfin islam borrow programmatic repay busi financial incom officeas finance activa insurable applic service relief policies local amount econometric

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124

Published Date

2007-08-28 03:35:21

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Islamic Microfinance in Sri Lanka by Faraaz Shaul Hameed

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