REGULATORY FRAMEWORK FOR MEMBER-OWNED ISLAMIC MICROFINANCE INSTITUTION:

FOCUS ON ISLAMIC SAVING GROUPS AND COOPERATIVES SUB-SAHARAN AFRICA (SSA)

Muhammad-Bashir Owolabi Yusuf, Nasim Shah Shirazi and Moha Asri Abdullah

The importance of member-owned microfinance in Sub-Saharan Africa cannot be over emphasised. More than 85 percent of people in this region are unbankable with majority living in rural area where there are no financial services, be it formal or informal.

This paper, therefore, proposes a set of rules regulations for member-owned Islamic to guide its operations to safeguard its members and facilitates both government and donors involvements.

Literature Review Islamic MicrofinanceIslamic Microfinance and Poverty AlleviationCharacteristics of Member-Owned

Microfinance Institutions in SSA

Key Characteristics of Member-Owned Islamic Microfinance Institutions in SSA

Islamic Saving Group (ISG)Islamic Financial Cooperatives (IFC)

Regulatory framework for MIMIReasons for regulationsProposed Frameworks• Primary Regustrar• Network of MIMIs• Self-Regulatory Body• Apex Institutions• Delegate Supervision• Financial Supervisory Agency• Shariah Advisory Board

Concluding Remarks

Terima Kasih