Article: Islamic microfinance in Indonesia: the challenge of institutional diversity, regulation, and supervision.(Research Notes and Comments)(Report)

Discovering Islamic Microfinance

Islamic finance has boomed in recent years; but what has hit the headlines is big money that is moved around, following the principles of Islamic law. Since the Grameen Bank in Bangladesh and its founder, Professor Muhammad Yunus, who was awarded the Nobel Peace Prize in 2006, microcredit and microsavings have been widely discussed as instruments of poverty alleviation and local development. But Islamic microfinance has hardly been mentioned in this context, i.e., the collection of small savings and the provision of small loans based on Shariah.

My first encounter with Islamic finance and microcredit, or rather the lack ...

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