Islamic Social Finance Report 2014

The Islamic Research and Training Institute and Thomson Reuters present you with the maiden issue of Islamic Social Finance Report. As poverty continues to be the biggest moral challenge of the century Islamic social finance offers an alternative solution to meeting the needs of the poor. There is a growing realization that social finance rooted in philanthropy and not-for-profit behavior have neither been fully understood nor explored with regard to their potential to address some of the challenges associated with conventional microfinance. In this context, this report on flow of funds in the social sector assumes great significance. The Islamic social finance sector broadly comprises the traditional Islamic institutions based on philanthropy e.g. zakah, sadaqah and awqaf; those based on mutual cooperation e.g. qard and kafala; and also the contemporary Islamic not-for-profit microfinance institutions that use for-profit modes primarily to cover costs and sustain their operations. Unlike the mainstream Islamic financial services sector, there is inadequate research and documentation of practices pertaining to this sector. The report fills this gap.. In this year's report, we provide the historical trends, future challenges and prospects for the Islamic social finance sector in 7 countries in South and South-East Asia - Indonesia, India, Pakistan, Bangladesh, Malaysia, Singapore and Brunei Darussalam. We examine the broad regulatory and policy environment at the macro level as well as good and bad practices at the meso and micro levels to seek answers to the following questions as well as to encourage healthy deliberations around them: How much regulation is right for the Islamic social finance sector? Do stringent laws and over-regulation stifle the sector? How do we harmonize the different regulatory frameworks governing institutions based on religious and secular philanthropy, co-operation, not-for-profit and for-profit finance? How do we develop a unified and integrated framework for the Islamic social finance sector? What roles do supporting institutions, e.g. networks and associations, institutions of higher learning, trainers and consultants, developers of standards, play in the sector? How do we enhance transparency, accountability and governance in the sector? What's included? Overview of sector Poverty-related indicators Potential of Islamic social finance to meet the resource gap Regulatory and policy framework Institutional structure and supporting infrastructure Case studies of success stories and good practices Lessons and policy Implications To get the study please click here. Let me also invite you to share your views and opinions about how to improve its value further for our reader(s). Please email them to the IRTI Islamic Social Finance team Kind Regards, Islamic Finance Gateway Team Thomson Reuters