Credit risk in Islamic microfinance institutions: The role of women, groups, and rural borrowers
Author | Mohamed, Toka S. |
Author | Elgammal, Mohammed M. |
Available date | 2023-11-15T11:19:58Z |
Publication Date | 2023-03-01 |
Publication Name | Emerging Markets Review |
Identifier | http://dx.doi.org/10.1016/j.ememar.2022.100994 |
Citation | Mohamed, T. S., & Elgammal, M. M. (2023). Credit risk in Islamic microfinance institutions: the role of women, groups, and rural borrowers. Emerging Markets Review, 54, 100994. |
ISSN | 15660141 |
Abstract | Using international data, we find that Islamic MFIs experience reduced credit risk by offering more groups loans, serving more women, and serving more borrowers in rural locations. Conventional MFIs benefit from fewer group loans, less loans to rural borrowers, and a greater focus on female borrowers. Our results contribute to microfinance and financial inclusion literature by highlighting the potential of tapping into the social dynamics within Muslim communities. We present encouraging insights for Islamic MFIs donors and managers on the possibility of promoting the financial inclusion of women and rural borrowers without compromising the quality of the credit portfolio. |
Language | en |
Publisher | Elsevier |
Subject | Credit risk Financial inclusion Islamic microfinance Microfinance Risk management |
Type | Article |
Volume Number | 54 |
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Center for Entrepreneurship and Organizational Excellence Research [126 items ]
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Finance & Economics [415 items ]