RURAL DEVELOPMENT SCHEME OF ISLAMI BANK BANGLADESH LIMITED (IBBL): ASSESSMENT AND CHALLENGES

  • M.Mizanur Rahman Director (Research), Islami Bank Training and Research Academy, Mohammadpur, Dhaka-1207, Bangladesh
  • M. Jafrullah Director General, Islami Bank Training and Research Academy, Mohammadpur, Dhaka-1207, Bangladesh
  • ANM Tawhidul Islam Software Engineer, Islami Bank Training and Research Academy, Mohammadpur, Dhaka-1207, Bangladesh

Abstract

Islami Bank Bangladesh Limited (IBBL) has launched a shar¥cah based Micro-finance program named Rural Development Scheme (RDS) in 1995, to uplift the overall socioeconomic plight of the rural poor. Presently, some 0.52 million group members of which 94 per cent female are involved in this scheme. Before further expansion to new areas, an assessment of the achievement of the RDS and its impact on the livelihood of the rural people was required. To conduct this study, primary data were collected interviewing 1020 randomly selected RDS clients working across the country. The study analysed many facets of the RDS and concludes that it was generally a success. Household income and expenditure had increased significantly and clients had a positive opinion towards the microinvestment program as it improved their standards of living. The study recommends that RDS activities be extended towards hardcore poor, especially for widows and divircees. Monitoring and supervision should be strengthened, while more ethical and moral motivational programs have been undertaken for both field supervisors and clients to reduce shar¥cah violation. The program can be replicated in other rural areas of Bangladesh in order to accelerate economic activities of the poor.

JEL classification: G21, Z12

Key words: Shar¥cah -based microfinance, Rural development, Bangladesh.
How to Cite
Rahman, M., Jafrullah, M., & Islam, A. T. (1). RURAL DEVELOPMENT SCHEME OF ISLAMI BANK BANGLADESH LIMITED (IBBL): ASSESSMENT AND CHALLENGES. International Journal of Economics, Management and Accounting, 16(2). Retrieved from https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/148
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