Strategic Partnership between Sharia Banks and Microfinance Institutions to Support Sustainable Development

Rayvanza Rayvanza, Rita Nengsih, Khairuna Khairuna, Samsul Ikhbar, Syakirah Intiman

Abstract


This study analyses Islamic bank-microfinance collaboration for sustainable development. The purpose is to determine how these two types of financial institutions might collaborate to promote financial services, small enterprises, and sustainable development goals like poverty reduction, education, and environmental preservation. This study examined case studies, industry reports, and related academic literature using article reviews and qualitative analysis. Many research have examined financial inclusion's impact on sustainable development, but few have examined Islamic finance and microfinance's harmonic interplay. The study indicated that Islamic bank-microfinance institution interactions enhanced marginalised group financial inclusion and ethical and sustainable business practices. But rule differences, product innovation, and technical infrastructure must be addressed. The article suggests more tailored solution research, technical investment, and regulator cooperation to strengthen these ties. This study aims to aid Islamic bank-microfinance partnership advocates. Policymakers, financial practitioners, and researchers who wish to strengthen sharia finance and microfinance for inclusive and sustainable economic growth need it too.


Keywords


Islamic banks, microfinance institutions, sustainable development, reducing poverty, technology infrastructure

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References


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DOI: https://doi.org/10.30596/miceb.v2i0.732

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