Suchergebnisse

Introduction -- The Janesville Plan -- A bank of our own -- Leverage -- Free market statism -- A new foundation -- P3s and foreign affairs -- Companies as policy organs -- Transparency -- Contracts -- Emancipation -- Renegotiations -- Recommendations.

This study explores the idea of Islamic banks requesting for collateral or guarantee when financing, the rationale for requesting loan security, and its acceptability from Islamic perspectives. The study reviewed the previous literature and Islamic injunctions to study and justify the use of collateral and guarantor to hedge the risk of financing default. It is found that Islamic banks like conventional banking system encourage requesting loan security to ensure borrowers' commitment and protect investors' wealth. Despite its effect on loan rejection, secured loans are found to be recovered more easily than unsecured loans. Government and Islamic banks are therefore advised to device mean for helping small-scale businesses to access financing, through credit guarantee schemes and participatory financing mechanisms, to enhance financial inclusion.

This study explores the idea of Islamic banks requesting for collateral or guarantee when financing, the rationale for requesting loan security, and its acceptability from Islamic perspectives. The study reviewed the previous literature and Islamic injunctions to study and justify the use of collateral and guarantor to hedge the risk of financing default. It is found that Islamic banks like conventional banking system encourage requesting loan security to ensure borrowers' commitment and protect investors' wealth. Despite its effect on loan rejection, secured loans are found to be recovered more easily than unsecured loans. Government and Islamic banks are therefore advised to device mean for helping small-scale businesses to access financing, through credit guarantee schemes and participatory financing mechanisms, to enhance financial inclusion.

This paper surveys the recent literature on the relationship between SMEs, financial deepening and economic development. While a large SME sector is not associated with faster economic growth or poverty alleviation, financial deepening can have a pro-growth and pro-poor impact by alleviating SMEs' financing constraints, enabling firm entry and entrepreneurship, and better resource allocation. It is important to differentiate between different segments of the SME population, most critically between subsistence micro entrepreneurs and transformational entrepreneurs. This paper also discusses the importance of market structure, competition and regulations for SMEs and their access to finance over the business cycle and during crises.