CGAP (Consultative Group to Assist the Poor), a policy and research center; Deutsche Bank, a European commercial bank with a microfinance program; Grameen-Jameel, a company that provides support to microfinance institutions (MFIs); and the Islamic Development Bank, an international finance institution, recently announced the Islamic Microfinance Challenge, a contest intended to promote the innovative design of Shariah-compliant products for Islamic microfinance clients. Managing Director and Chief Operating Officer for the Middle East and North Africa region of Deutsche Bank, Alexander Schuetz, said in a press release, “The competition will identify innovative product and business ideas that fulfill both Islamic and good business criteria, and thus have the potential to become self-sufficient and profitable.”
The need for innovative approaches to microfinance arises from the fact that many Muslims do not accept conventional microfinance approaches, due to their dissonance with Shariah, Islamic law. Islamic finance principles prohibit interest-based contracts and emphasize risk-sharing and asset-backed transactions. The contest will award USD 100,000 in grant funds to a working microfinance model selected by a panel of independent judges.
About CGAP (Consultative Group to Assist the Poor)
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
About Deutsche Bank
Founded in 1870, Deutsche Bank is an international bank with assets totaling EUR 2.2 trillion (the equivalent of USD 3 trillion). Headquartered in Germany, the bank has employees in 76 countries around the world. Deutsche Bank operates a microcredit development fund that provides financing to microfinance institutions (MFIs) to attract further resources on a leveraged basis from local commercial banks.
About Grameen-Jameel
Established in 2007, Grameen-Jameel is a joint venture between the Grameen Foundation and Grow Well Limited. The company aims to alleviate poverty in the Arab World by forming strategic partnerships with microfinance institutions and providing technical and financing support. As of 2008, Grameen-Jameel had facilitated local currency financing of USD 44 million backed by USD 20 million in guarantees to microfinance Institutions and had reached more than 350,000 new microfinance clients through its partners in Egypt, Jordan, Lebanon, Morocco, Palestine, Tunisia and Yemen.
About the Islamic Development Bank
The Islamic Development Bank is an international financial institution which formally began operations on October 20, 1975. The bank aims to foster the economic development and social progress of its 56 member countries as well as Muslim communities in non-member countries, in accordance with the principles of Islamic Law. The Islamic Development Bank has provided project and trade financing for an amount of approximately USD 64 billion.
By Eric McKay, Research Assistant
Bibliography
[1] “Islamic Microfinance Challenge 2010: Innovating Sustainable, Scalable, and Market-Driven Models”, CGAP, http://www.cgap.org/p/site/c/template.rc/1.26.12645/
Additional Links
MicroCapital Universe: CGAP: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital Universe: Deutsche Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Bank
MicroCapital Universe: Grameen-Jameel: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen-Jameel
MicroCapital Universe: Islamic Development Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Islamic+Development+Bank
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Climate Risk and Financial Inclusion: A Regulatory Perspective on Risks and Opportunities;” by Peter Knaack, Peter Zetterli
- MICROFINANCE EVENT: 11th African Islamic Finance Summit; December 10-12, 2023; Hargeisa, Somaliland
- MICROFINANCE PAPER WRAP UP: “Women Agents for Financial Inclusion: Exploring the Benefits, Constraints and Potential Solutions,” by Emilio Hernandez et al, Published by CGAP
- MICROFINANCE EVENT: 5th Global Takaful and Re-takaful Forum; September 19-21, 2023; Dubai, UAE
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
