Proceedings of the International Conference, Integrated Microfinance Management for Sustainable Community Development (IMM 2016)

Islamic Banks Concern with the Poor and Micro Businesses: An Evaluation on their Al Qard Hasan (Beautiful Loan)

Authors
Egi Firmansyah
Corresponding Author
Egi Firmansyah
Available Online October 2016.
DOI
https://doi.org/10.2991/imm-16.2016.28How to use a DOI?
Keywords
alleviating poverty, Al qard hasan, Islamic Banks, micro businesses, poor people
Abstract
Islamic Banks came up with one of the notions as stated in the Quran (59:7) , wealth must not be a perpetual distribution among the rich. This can be manifested in the form of distributing credit to the real business sector through a financing product, namely Al qard hasan (beautiful or benevolent loan). This paper is aimed at investigating the role or performance of Islamic banks in distributing Al qard hasan, usually given to the micro businesses, poor and less bankable people. This research is a descriptive research employing financial data from banks' annual reports. The sample taken is Indonesia's four major sharia compliant banks (BUSN) which are also categorized as foreign exchange banks. The results show that over the period of observation, the Al qard hasan of all banks had a declining tendency. Among the four banks, BSM and BNIS are the banks which had the highest portion of Al qard hasan (over the total financing). This result evidenced that the government owned banks (BSM and BNIS) had more concern with the poor and micro businesses, compared to the private-owned banks (BMI and BMS). To the author's knowledge, this is the first study to address the issue of Al qard hasan in the Indonesian context using the major Islamic banks.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Cite this article

TY  - CONF
AU  - Egi Firmansyah
PY  - 2016/10
DA  - 2016/10
TI  - Islamic Banks Concern with the Poor and Micro Businesses: An Evaluation on their Al Qard Hasan (Beautiful Loan)
BT  - International Conference, Integrated Microfinance Management for Sustainable Community Development(IMM 2016)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/imm-16.2016.28
DO  - https://doi.org/10.2991/imm-16.2016.28
ID  - Firmansyah2016/10
ER  -