FINANCIAL INCLUSIVENESS OF THE POOR

FINANCIAL INCLUSIVENESS of the Poor BEYOND MICROFINANCE
‘nus book addresses several issues in developing the Islamic micmfinance institutions.
The most challenging issues for microfinance institution is between exclusion and
inclusion. Customets are excluded from the main mainstream financial institutions hut
they are included in the Islamic microfinance institutions. Islamic microfinance
institutions have potential to gtow due to their ability to bring financial access to an
underserved market and due to the growing size of this market. the world’s poorest.
Islamic microfinance institutions might fail to serve the targeted group. These
failures mtght be due to the following reasons: many Islamic microfinance institutions
never teach either the minimal scale or the efficiency level necessary to cover costs: many
Islamic mrcrofinance institutions face non-supportivc policy frameworks and daunting
pl»sical. social and economic challenges: some Islamic microfinance institutions fail to
manage their tunds adequately enough to meet future cash needs and as a result faced
liquidity problems: and some Islamic microfinance institutions had neither the financial
management systems nor the skills required to run a successful operation.

AUTHORS:

• ABDEL-RAHMAN ELZAHI. PhD. Senior Research Economist. Islamic Research and
  Training Institute. Islamic Development Bank. Universiti Islani Sultan Sharif Ali,
• ABDUL GHAFAR ISMAIL. PhD. Head of Research Division. Islamic Research and
  Training Institute. Islamic Development Bank and Professor of Islamic banking and
  financtal economics