Evaluation of Islamic rural banks

Kh. Shatila, D. S. Ushakov
Sagesse University, Furn El Chebbak, Beirut, Lebanon
Suan Sunandha Rajabhat University, Bangkok, Thailand

Evaluation of Islamic rural banks

Abstract. The effective establishment of the institution of Rural Banks merely does not mark its activity to fund
vulnerable people and small enterprises. Because of insecurity and the scarcity of funding and services needed to tackle
insecurity, most Rural Banks initiatives have not fulfilled their targets. The key challenge confronting micro-financing
organizations is the shortage of funding and the lack of knowledge, understanding, knowledge and surveillance. The
study would investigate whether Rural Banks are finding benefit or serving their poverty alleviation task as well as the
explanations for their high rates of interest and how they can be decreased. The work explores the attributes of Rural Banks
organizations in foreign countries because of their large levels of interest. There is no control in the Rural Banks market.
Micro-finance firms are profit-generating yet viable as well as unprofitable. The methodology used is a qualitative and
quantitative exploratory study, which is done by interviews with three micro-finance organizations. The data obtained helps
any Rural Banks organization, but the way it generates profit varies: providing the poor with more money and reaching or
sharing returns, to fulfill the social task. At least, in view of the limitations recognized in the study, many recommendations
and suggestions are being placed forward for a better Rural Banks scheme.

Keywords: interest rate, profitability, success, liquidity, leverage and loan durability

Paper submitted: September 20, 2021.

For citation: Shatila Kh., Ushakov D. S. (2021) Evaluation of Islamic rural banks. The Science of Person:
Humanitarian Researches, vol. 15, no. 3, pp. 169–181. DOI: 10.17238/issn1998-5320.2021.15.3.20.

Save article