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Role of Islamic Microfinance in Alleviating Poverty in Bangladesh: A Study on RDS of IBBL

Author

Listed:
  • Md. Masud Parvej
  • Md. Asad Iqbal Chowdhury
  • Md. Kazi Golam Azam
  • Md. Musharof Hossain
  • Abdullah Mohammad Ahshanul Mamun

Abstract

The goal of this study is to determine the role of Islamic microfinance in alleviating poverty, a study on RDS (Rural Development Scheme) of the Islamic Bank Bangladesh Limited. The study employed interview method, descriptive statistics, T-test, Chi-squared test, and multiple regression analysis to investigate a total of 328 samples (RDS borrowers). The sample has been purposefully selected for the study from two districts of Rajshahi division of Bangladesh. The results of our study indicate that in any category having an income level of more than 5001 to 10000, after access to the RDS scheme of IBBL, overall, 72% of respondent¡¯s income increased. In the case of impact analysis of the program on poverty alleviation, the results of the statistical analysis (regression model) revealed that there is a significant impact of the Rural Development Scheme (RDS) on poverty alleviation (P-value-0.000).

Suggested Citation

  • Md. Masud Parvej & Md. Asad Iqbal Chowdhury & Md. Kazi Golam Azam & Md. Musharof Hossain & Abdullah Mohammad Ahshanul Mamun, 2020. "Role of Islamic Microfinance in Alleviating Poverty in Bangladesh: A Study on RDS of IBBL," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 111-129, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:111-129
    DOI: 10.5430/ijfr.v11n4p111
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    References listed on IDEAS

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    3. Katsushi S. Imai & MD. Shafiul Azam, 2011. "Does Microfinance Reduce Poverty in Bangladesh? New Evidence from Household Panel Data," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 633-653, October.
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    5. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    6. Supriya Garikipati, 2017. "The Impact of Microfinance on Poverty Alleviation: Making Sense of the Evidence," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 7, pages 189-206, Palgrave Macmillan.
    7. Gilbert O. Boateng & Akwasi A. Boateng & Harry S. Bampoe, 2015. "Microfinance And Poverty Reduction In Ghana: Evidence From Policy Beneficiaries," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 6(1), pages 99-108.
    8. Wahibur Rokhman, 2013. "The Effect Of Islamic Microfinance On Poverty Alleviation: Study In Indonesia," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 11(2), pages 21-30.
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