Financial Inclusion Disclosure in Islamic Microfinance: The Case of Baitul Mal Wa Tamwil

Rahmawati (), Hafiz Majdi Ab Rashid (), Hairul Azlan Bin Annuar () and Siti Alawiyah Siraj ()
Additional contact information
Rahmawati: Syarif Hidayatullah State Islamic University
Hafiz Majdi Ab Rashid: IIUM
Hairul Azlan Bin Annuar: IIUM
Siti Alawiyah Siraj: IIUM

Chapter Chapter 5 in Enhancing Financial Inclusion through Islamic Finance, Volume II, 2020, pp 137-160 from Palgrave Macmillan

Abstract: Abstract Indonesia has the highest concentration of Islamic Microfinance Institutions such as Baitul Mal Wa Tamwil (BMT) that have the potential of promoting financial inclusion among the unbanked poor. In the last decade the Islamic microfinance institutions’ programming reveals a lack of transparency, infrastructure for payments and credit reporting, as well as adequate governance mechanisms. Research on financial inclusion index is largely ignored. This paper is an attempt to fill this gap by proposing an index for financial inclusion disclosure. It examines the extent and quality of the financial inclusion index, specifically the association between this index and the financial inclusion performance of BMT. This paper utilizes the content analysis technique to quantify financial inclusion disclosure from the BMT “Annual Report” in Indonesia during 2014–2015. It will be of interest to managers, regulatory agencies and policy makers involved in developing laws, to strengthen the requirement on disclosure, financial consumer protection, and credit reporting.

Keywords: Financial inclusion disclosure; BMT; Firm performance; Indonesia; Financial inclusion index (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-3-030-39939-9_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030399399

DOI: 10.1007/978-3-030-39939-9_5

Access Statistics for this chapter

More chapters in Palgrave Studies in Islamic Banking, Finance and Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().