Islamic Banks Financing and Poverty Alleviation in Sudan

Issam Mohamed ()

MPRA Paper from University Library of Munich, Germany

Abstract: The continuous regressions in the per capita income of the Sudanese people have triggered many suggestions to ameliorate their productive capabilities. One of them was the facilitating in financing programs through official channels. However, there are many structural impediments that inhibit those programs. One of the financial programs was the Small or miniature financing in addition to the establishment to specialized Banks as the Family Bank. The current paper discusses issues of financing in Sudan as part of programs initiated to improve income per capita. Islamic and regular financing systems are analyzed in order to explain existing impediments. Then Family Bank systems and financing facilities are discussed. Results explained in this paper clear the facts that there are other macroeconomic impediments and distortions that have negative impacts on feasibility of conducting normalized productive activities. One of them is the accelerating inflation rates and foreign currencies exchange rates. That is in addition to the indigenous distortions of inflated taxation rates that render smaller capitals from gaining profits on small scale. The expected productive cycles and variables are not subjected to the rule of Ceteris Paribas where cost can change. That adds to the difficulties in gaining the financing per se which are represented in the required time, bureaucratic processes, required collateral and higher interest rates. Even in the Islamic financing, the methodologies applied do not differ from the traditional in interest rates. Both are subtracted from final productive outputs. The expected Zero Interest Rates expected from such small production/income improvement financing projects do not exist. The final results are manifested in lesser beneficiaries, less expected incomes with diminishing internal return rates.

Keywords: Sudan; Islamic Banking; Financing; Poverty; Economic Performance (search for similar items in EconPapers)
JEL-codes: A10 A12 A13 A14 B22 B40 E50 E51 E52 E58 (search for similar items in EconPapers)
Date: 2010-03-18
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/34489/1/MPRA_paper_34489.pdf original version (application/pdf)

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:pra:mprapa:34489

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().