Islamic microfinance..microtakaful A brief discussion on challenges

Download Islamic microfinance..microtakaful  A brief discussion on challenges

Post on 01-Jan-2016

38 views

Category:

Documents

3 download

Embed Size (px)

DESCRIPTION

Ahmed Rostom Financial Sector Specialist East Asia and Pacific Finance and Private Sector Development (EASFP) The World Bank. Islamic microfinance..microtakaful A brief discussion on challenges. November 2012. Global Picture. - PowerPoint PPT Presentation

TRANSCRIPT

<ul><li><p>Islamic microfinance..microtakaful A brief discussion on challengesAhmed RostomFinancial Sector Specialist East Asia and Pacific Finance and Private Sector Development (EASFP)The World Bank November 2012</p></li><li><p>Global Picture*MENA dominates in terms of number of financing clients, EAP dominates in terms of portfolio sizeFinancing outstanding amounts (USD millions)</p><p>Chart1</p><p>181.9730.1413024741</p><p>27.9870.0217319731</p><p>596.9360.463522246</p><p>475.0530.3688798021</p><p>5.8770.0045635047</p><p>Financing active clients (thousands)</p><p>%</p><p>Data source</p><p>Source of data</p><p>IBBLweb site - took data of their rural program. Didnt manage to get data from them</p><p>Indonesia - BPRSsCentral Bank Indonesia (can be found on internet)</p><p>Indonesia - BRIEmail from BRI Syariah, data from 2010 (but data from 2011 available in the email)</p><p>SudanCentral bank sent data for 6 Mfis (refer to excel doc) + info directly from bank of khartoum</p><p>Other dataIndividual surveys received by cgap and sanabel</p><p>OUTPUT TABLES</p><p>1. Landscape Summary DataType of institutions and history in islamic finance</p><p>InstitutionsTotalEAPECAMENASASSA</p><p>Total # institutions surveyed6511335124</p><p># institutions surveyed by Institution type65100%11100%3100%35100%12100%4100%</p><p>Commercial bank711%19%00%514%18%00%</p><p>Cooperative1015%764%00%13%00%250%</p><p>microfinance bank46%00%00%39%00%125%</p><p>NBFI1320%00%267%823%217%125%</p><p>NGO2640%218%00%1543%975%00%</p><p>other23%00%133%13%00%00%</p><p>Aggregated23%19%00%13%00%00%</p><p>nr12%00%00%13%00%00%</p><p>Breakdown by type of ownership65100%11100%3100%35100%12100%4100%</p><p>Corporation3161%113%150%2273%571%250%</p><p>Partnership714%338%00%310%00%125%</p><p>Sole918%338%150%310%229%00%</p><p>Other48%113%00%27%00%125%</p><p>N/P1431550</p><p>Breakdown by organizational set up65100%11100%3100%35100%12100%4100%</p><p>Sole business3960%873%3100%2057%758%125%</p><p>Window2640%327%00%1543%542%375%</p><p>window, but separate fi stat available1220811</p><p>N/P000000</p><p>N/P but separate fi stat available000000</p><p>Breakdown by type of offer65100%11100%3100%35100%12100%4100%</p><p>Islamic MF only3960%764%267%1749%1083%375%</p><p>Islamic MSME finance2640%436%133%1851%217%125%</p><p>N/P00%00%00%00%00%00%</p><p>Breakdown by start date of isl. mf operations65100%11100%3100%35100%12100%4100%</p><p>&gt;10 years1831%333%00%1031%433%133%</p><p>6 to 10 years1220%333%267%619%18%00%</p><p>2 to 5 years1932%222%133%1134%433%133%</p><p> 100,00035%19%00%13%18%00%</p><p>N/P000000</p><p>Breakdown by USD financing65100%</p><p>&lt; 1 million3656%</p><p>1 to 2 million1117%</p><p>2 to 10 million813%</p><p>10 to 100 million711%</p><p>&gt; 100 million23%</p><p>N/P1</p><p>2Overall islamic finance outreach</p><p># clients of Isl. FiIsl. Fi outstanding ($)# depositorsDeposit amount ($)# institutions providing insurance</p><p>Sample size6564252214</p><p>Total1,288,111714,426,930839,424249,287,969</p><p>Breakdown by region100%100%100%100%100%</p><p>EAP181,97314%347,753,38149%648,58377%233,516,10594%214%</p><p>ECA27,9872%17,014,9892%70,0478%2,490,9591%00%</p><p>MENA597,22146%251,772,46435%52,2556%10,499,4014%429%</p><p>SA475,05337%96,065,54413%59,6467%1,577,0941%536%</p><p>SSA5,8770%1,820,5520%8,8931%1,204,4100%321%</p><p>Breakdown by type of instution100%100%100%100%100%</p><p>Commercial bank778,04560%161,970,65123%22,0233%6,341,5863%17%</p><p>Cooperative17,7271%3,305,5660%20,5442%2,449,0151%429%</p><p>microfinance bank24,7902%7,623,1191%18,8332%5,170,8402%17%</p><p>NBFI38,6963%13,947,1562%6,4411%271,8220%321%</p><p>NGO224,07117%188,750,91826%65,2298%1,691,0471%536%</p><p>other26,2742%29,496,2804%70,0478%2,490,9591%00%</p><p>Aggregated176,32614%308,177,29543%636,30776%230,872,70093%00%</p><p>nr2,1820%1,155,9450%00%00%00%</p><p>3Financing products</p><p>NB: the numbers provided in this section might be different from section 2 above (total clients per institution): not all respondents provided breakdown by product; one client can have two loans; some confusion between active and total clients, etc.</p><p># institutions offering each productTotalEAPECAMENASASSA</p><p># respondents:6411335114</p><p>ijarah711%327%00%26%00%250%</p><p>istisna69%19%00%26%218%125%</p><p>mudaraba1117%436%00%411%218%125%</p><p>murabaha5484%873%3100%3189%982%375%</p><p>musharaka1219%19%00%617%327%250%</p><p>qard hassan2438%764%133%617%764%375%</p><p>salam711%19%00%39%218%125%</p><p>sale with deferred price12%19%00%00%00%00%</p><p>other46%218%00%13%19%00%</p><p># clients - financingTotalNGONBFICooperativeCommercial bankMicrofinance bank</p><p># respondents:6326131063</p><p>Total915,652224,42538,74619,113395,72624,790</p><p>Ijarah1,8610.2%480%00%240%00%5762%</p><p>Istisna9430.1%00%00%20%2070%810%</p><p>Mudaraba2,6340.3%110%550%660%5230%2081%</p><p>Murabaha672,89673.5%50,99823%36,41394%17,14690%372,56494%16,83368%</p><p>Musharaka6,8540.7%20%1,0773%00%870%00%</p><p>Qard hassan191,70720.9%173,33977%1,2013%6543%00%00%</p><p>Salam24,5972.7%270%00%00%22,3456%2,2239%</p><p>sale with deferred price00.0%00%00%00%00%00%</p><p>Other14,1601.5%00%00%1,2216%00%4,86920%</p><p>$ financing outstandingTotalNGONBFICooperativeBankMicrofinance bank</p><p># respondents:6225131063</p><p>Total628,097,148188,750,91813,947,1563,275,46175,473,3457,820,748</p><p>ijarah1,943,8300.3%6,9400.0%00.0%55,5801.7%00.0%45,8200.6%</p><p>istisna2,807,0050.4%00.0%00.0%99,1553.0%29,2600.0%14,6000.2%</p><p>mudaraba9,696,6231.5%15,0430.0%25,0000.2%8400.0%106,8040.1%744,1069.5%</p><p>murabaha412,512,19265.7%42,778,31722.7%12,317,26988.3%2,928,50689.4%73,348,40697.2%3,627,46946.4%</p><p>musharaka30,725,4694.9%1,9980.0%611,7644.4%00.0%175,7070.2%00.0%</p><p>qard hassan155,656,95324.8%145,934,06877.3%993,1227.1%181,3335.5%00.0%00.0%</p><p>salam2,342,3980.4%14,5520.0%00.0%00.0%1,813,1692.4%512,1826.5%</p><p>sale with deferred price00.0%00.0%00.0%00.0%00.0%00.0%</p><p>other12,412,6782.0%00.0%00.0%10,0470.3%00.0%2,876,57136.8%</p><p>Financing product characteristicsAll productsmudarabamusharakaqard hassanmurabaha</p><p># products reported15913132978</p><p>Maximum duration</p><p>10 yearsIslamic MSME financeSole businessN/P00010000007367361071070.1Yes100000754754880noN/PyesYESNONONONONOnoneYESNOYESYESNONOYESLPDB, PNM, cooperative department</p><p>038CWCDSAPakistan1992ngoCORPORATION200932 to 5 yearsIslamic mf onlyWindowYES01011010104,8954,895822,843822,843168No00000000noN/PyesYESNONONONOYESCWCD has developed manuals for Shariah compliant products through a consortium of Shariah advisors. A fatwa has been obtained from Darul Aloom Karachi. These manuals are reviewed and updated by chartered accountants and the internal shariah advisorYESNONONONONOYESLoans from apex fund at a subsidized rate</p><p>102Al Tadamun for small and microfinanceMENAYemen2006microfinance bankCORPORATION200666 to 10 yearsIslamic MSME financeSole businessYES00000000204,8694,8692,876,5712,876,571591No00000000noN/PyesYESNONONOYESNOYESYESNONONONONON/A</p><p>104AbyanMENAYemen2003ngoN/P200396 to 10 yearsIslamic mf onlySole businessNO00020000005,7295,729871,104871,104152Yes0100005,7295,729149,865149,86526yesN/PyesYESNOYESNONONON/AYESYESNONONONONON/P</p><p>106ACADMENAPalestine1993ngoCORPORATION199319&gt;10 yearsIslamic mf onlyWindowNO0001100000427471822,075822,0751,925No00000000noN/PyesNOYESNONONOYESthe approval have been taken from the sharia consultant at the beginning, and there is an officer to assure it goes in accordance with Al ShariaYESNONONONONOYESLoan from the Islamic Bank with commission</p><p>107AsalaMENAPalestine1997ngoCORPORATION200842 to 5 yearsIslamic MSME financeWindowYES0001000000378378648,772648,7721,716No00000000noN/PnoN/PN/PN/PN/PN/PN/P4NON/PN/PN/PN/PN/PN/P</p><p>108FatenMENAPalestine1998nbfiCORPORATION200576 to 10 yearsIslamic mf onlyWindowYES00010000001,0311,0314,468,5514,468,5514,334No00000000noN/PyesNOYESNONOYESYESContracts and forms used in Murabaha Islamic Lending tool had been reviewedand approved by MUFTI Palestine.YESNOYESYESNONONON/A</p><p>110PARCMENAPalestine2005cooperativePARTNERSHIP200576 to 10 yearsIslamic mf onlyWindowYES0101010000122122303,909303,9092,491Yes00001038138100noN/PyesNOYESNONONOYESEvery agreement, form and file is rising to the Authority or External Sharia Advisor with a detailed procedures manualYESNOYESNOYESNONON/A</p><p>111PDFMENAPalestine2001nbfiCORPORATION200111&gt;10 yearsIslamic MSME financeWindowN/P0004000000142142122,870122,870865No00000000noN/PyesNOYESNOYESNOYEShiring an advisor or councile to observe applaying Shariah compliantYESNONOYESNONONON/A</p><p>112UNDP Rural Community Development program at Jabal Al HossMENASyria2000AggregatedCORPORATION200012&gt;10 yearsIslamic mf onlyWindowN/P000100000016,30016,30011,040,00011,040,000677Yes0000102,1942,19480,00080,00036noN/PyesNONONONOYESNON/PYESNONONONONOYESDonation from UNDP</p><p>113PASEDMENASudan2001ngoCORPORATION200111&gt;10 yearsIslamic mf onlySole businessYES10111100003,9693,969826,715826,715208No00000000noN/PyesNOYESNONOYESYESfollowing Islamic Instruction that issued the Central Bank of Sudan, we should use the Islamic formulas in all kind of loansYESNONOYESNONONON/A</p><p>114Youth Institution for MicrofinanceMENASudan2011nbfiCORPORATION2011110 yearsIslamic MSME financeSole businessN/P00030000003,4623,462694,913694,913201No00000000noN/PyesYESNONONONOYESPresenting all Murabaha Operations to the Sharia Consultant to take his approval and then executionYESYESNONONONONON/A</p><p>117JanaMENASaudi Arabia2010ngoCORPORATION2010210 yearsIslamic MSME financeWindowN/P00010000006,5316,53115,029,88015,029,8802,301No00000000noN/PyesNONOYESNOYESYESThrough official letters issued by DEF and Fatwa DepartmentYESNONOYESYESYESYESTreasury contribution and Retained Earnings</p><p>128CHF ACSIMENAIraq2003ngoCORPORATION200396 to 10 yearsIslamic MSME financeWindowNO000100000016,40716,40726,551,72226,551,7221,618No00000000noNOyesNONOYESNOYESYESMake several meetings and then get a written fatwa for the legitimacy of the institution loansYESNONOYESNONONON/A</p><p>129Agricultural Bank Of SudanMENASudan1975Commercial bankCORPORATION199319&gt;10 yearsIslamic MSME financeSole businessYES0001001000330,057330,057388,543388,5431.2No00000000yesYESyesYESYESNONOYESYESA study by the the internal legitimacy control, includes the Assistant Director , and provided to the legitimacy of the Superintendent of BankingYESYESNOYESNONOYESGrants</p><p>130Family Bank - Bank Al OsraMENASudan2008Commercial bankCORPORATION200842 to 5 yearsIslamic MSME financeSole businessYES011110100035,67235,672664,662664,66219Yes10000019,94619,9464,912,0654,912,065246noYESyesYESNONONONOYESIts done by a referendum between the branches or the management, and then provide the result to Sharia Supervisory Board. They study it and then make the decisionYESYESYESYESNONONON/A</p><p>131Gezira MFIMENASudan2011nbfiCORPORATION2011110 yearsIslamic MSME financeWindowN/A1382,31986,497,306226nr0.00.0nrNON/PN/PN/PN/PN/PN/P</p><p>151Qard HassanMENALebanonngoN/P198725&gt;10 yearsIslamic mf onlySole businessYES000001000080,39480,394132,865,084132,865,0841,653nonoNON/PN/PN/PN/PN/PN/P</p><p>152Indonesia BPRSsEAPIndonesiaAggregatedN/PN/PN/PIslamic MSME financeSole businessYEs1111111010160,026168,096297,137,295297,137,2951,857yes011000634,113634,113230,792,700230,792,700364nrNoN/PN/PN/PN/PN/PN/P</p><p>153BRI SyariahEAPIndonesia2009Commercial bankN/P2009320%N/P81$48,540N/AN/AN/A44%</p><p>031cooperativeCURRENT ACCOUNTTamaraMICRO$52$0N/PN/P20-55%&gt;20%N/P1,811$403,8230$21,564.00100%N/A</p><p>031cooperativeCURRENT ACCOUNTTadikaMICRO$7$0N/PN/P20-55%&gt;20%N/PN/PN/PN/PN/P</p><p>031cooperativeCURRENT ACCOUNTTaduriMICRO$48$0N/PN/P20-55%&gt;20%N/PN/PN/PN/PN/P</p><p>032cooperativeCURRENT ACCOUNTTamara non KubeMICRO$0.55$0NoneNone4%.01-5%N/P754$80$1.3124%100%</p><p>104ngoPLSInvestment depositsMICRO$1$0Borrowing AmountN/P00%N/P5,729$149,865$149,865$248,815.0079%</p><p>110cooperativeNot specified381N/PN/PN/PN/P</p><p>112AggregatedNot specified2,19480000N/PN/PN/P</p><p>114nbfiPLScompulsory depositsMICRON/PN/PN/P1-2% of loan amount0%0%N/P1,450$7,00000.01%</p><p>115nbfiPLS2,182$78,21600.0N/P</p><p>121nbfiNot specified1,732101,415N/PN/PN/PN/P</p><p>130Commercial bankCURRENT ACCOUNTHouse ImprovementBoth$9$37N/AN/AN/PN/PN/P19,9464,912,065N/PN/PN/PN/P</p><p>153Commercial bankCURRENT ACCOUNTBoth2050,713</p><p>153Commercial bankTERM DEPOSIT ACCOUNTBoth2,0571,378,808</p><p>152AggregatedTERM DEPOSIT ACCOUNTtime depositboth22,67994,289,700</p><p>152AggregatedPLSsaving depositsboth611,434136,503,000</p><p>156microfinance bankOtherMICRO$13.20$26.41NoneNoneN/PN/PN/A23920,6070N/P</p><p>SM NOT SURE WHY HIGHLIGHTED THIS IS WHAT THEY HAD PUT DOWN ON THE SURVEY THEY PROVIDED IT IN BOTH CFA AND USD.</p><p>SM: literally said "personne physique" under sme/micro so I guess it doesn't matter but almost all products but one were micro so listed under micro</p><p>Alice Negre:not provided in III, but provided numbers in IVQ6B for this product so added in III</p><p>Alice Negre:was "investment fund" but in IV.Q6B, they give data only for PLS. So changed the category here</p><p>Alice Negre:Salam but in IV.Q6B, they give data only for PLS. So changed the category here to PLS</p><p>Alice Negre:was not there, but as they do report PLS numbers in IV Q6B, I added them</p><p>Alice Negre:was "other" but based on data in QIV. 6b, they mostly have current accounts, so changed to current account</p><p>Alice Negre:was murabaha</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>Alice Negre:was sales with defered prices but agree with nimrah on other types of categories</p><p>Alice Negre:was sales with defered prices but agree with nimrah on other types of categories</p><p>Alice Negre:was not in III, but we have some PLS in IV Q6b so added here as well</p><p>Alice Negre:$87 for the epargne plerinage option</p><p>Alice Negre:merged three lines, as conditions very similar and no detailed breakdown on portfolio data</p><p>Alice Negre:was investment account</p><p>Alice Negre:from Q5</p><p>Alice Negre:from Q5</p><p>Alice Negre:from Q5</p><p>Alice Negre:from Q5</p><p>Alice Negre:from Q5</p><p>both micro and SME</p><p>from Q5</p><p>Both micro and SME</p><p>from Q5</p><p>Alice Negre:from Q5</p><p>Alice Negre:Alice Negre:from Q5</p><p>Amr checked</p><p>central bank data october 2011includes dormant account (many)</p><p>central bank dataoctober 2011includes dormant accounts</p><p>1,203,728 million IDRoct 2011 central abk</p><p>831,479 milllion IDRcentral bank oct 2011</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>not specified in IV.Q6 but data in IV.Q5</p><p>not specified in Q6, but data in Q5</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>Alice Negre:from Q5.5</p><p>Alice Negre:from Q5.5</p><p>Did not report any deposit products in the III, nor any details on products in IVQ6b, but did report deposit data in the IV.Q5</p><p>Alice Negre:from Q5</p><p>Alice Negre:30% to 70% for the Mudaraba Plan option</p><p>Alice Negre:N/P but in IV.Q6B, they give data only for current accounts. So changed the category here to current account.</p><p>Alice Negre:N/P but in IV.Q6B, they give data only for current accounts. So changed the category here to current account.</p><p>Alice Negre:N/P but in IV.Q6B, they give data only for current accounts. So changed the category here to current account.</p><p>Alice Negre:N/P but in IV.Q6B, they give data only for current accounts. So changed the category here to current account.</p><p>demand deposit</p><p>"saving deposit" and "term deposit"</p><p>SM:5BHD</p><p>SM:10BHD</p><p>Islamic Product Offer: Takaful / micro segment</p><p>Initial name of tab: III. IS PROD OFFER TAKAFUL + SECTION IV Q6 INSURANCE PRODUCTS</p><p>checked and actual...</p></li></ul>

Recommended

View more >