Risk Mitigation of Covid-19 Pandemic in Baitul Maal Wat Tamwil

DOI

10.2991/assehr.k.210421.100How to use a DOI?

Keywords

Baitul Maal Wat Tamwil, Covid-19 Pandemic, Islamic Microfinance Institution, Risk Management

Abstract

Maintaining Baitul Maal Wat Tamwil (BMT) sustainability as an Islamic microfinance institution is very important because it can reduce poverty and increase economic growth. However, institutions usually face challenges, like the COVID-19 pandemic, which negatively impacts their sustainability. Therefore, the only way to keep such institutions functional and ensure financial progress is by practising risk management. Qualitative studies performed to analyze the lenitive effects of the risk management practices undertaken by BMT Maslahah Pasuruan and East Java due to the COVID-19 pandemic. Data collection conducted using interview techniques, documentation, and FDG (Forum Group Discussion). The results show that BMT has taken preventive steps in managing the risk. They optimized their marketing funding strategies to balance their outflows and members and cut down their cost, therefore overcoming financing inflow. Placement and distribution carried out selectively, using the suitable method and reserve losses on default debtors to avoid serious risks.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Esy Nur Aisyah
AU  - Zuraidah Zuraidah
AU  - Ryan Rahmah Maulayati
PY  - 2021
DA  - 2021/04/22
TI  - Risk Mitigation of Covid-19 Pandemic in Baitul Maal Wat Tamwil
BT  - Proceedings of the International Conference on Engineering, Technology and Social Science (ICONETOS 2020)
PB  - Atlantis Press
SP  - 691
EP  - 696
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210421.100
DO  - 10.2991/assehr.k.210421.100
ID  - Aisyah2021
ER  -