COMPARATIVE ANALYSIS THE ROLE OF ISLAMIC AND CONVENTIONAL MICROFINANCE INSTITUTIONS IN SUPPORTING THE WELFARE OF ECONOMICALLY VULNERABLE COMMUNITIES

Authors

  • Fakhri Muhammad Ario Putra Universitas Muhammadiyah Jakarta, Indonesia
  • Alfin Husna Ridho Pangestu Universitas Muhammadiyah Jakarta, Indonesia
  • Al-Anshari Universitas Muhammadiyah Jakarta, Indonesia
  • Filzah Aulia Universitas Muhammadiyah Jakarta, Indonesia

DOI:

https://doi.org/10.22515/jmif.v4i2.10407

Keywords:

Microfinance Institutions, Community Welfare, conventional vs sharia

Abstract

This study compares the performance of Conventional Microfinance Institutions (MFIs) and Sharia Microfinance Institutions (SMFIs) in supporting the welfare of economically vulnerable communities. The results show that SMFIs have an advantage in terms of social impact and financial inclusion for the poor, while MFIs excel in profitability and business expansion. However, both have different challenges in terms of liquidity stability and financial risk. This study recommends adaptive and inclusive policies, as well as optimizing the potential of social funds such as zakat, infaq, sadaqah, and waqf (ZISWAF) to support the sustainability of MFIs. Future research should further investigate the optimization of ZISWAF social funds in supporting the sustainability of microfinance institutions, analyze adaptive and inclusive policy models for both types of institutions, and evaluate strategies for improving liquidity stability and financial risk management.

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Published

2024-12-30

Issue

Vol. 4 No. 2 (2024): Journal of Management and Islamic Finance

Section

Articles

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Copyright (c) 2025 Fakhri Muhammad ArioPutra Fakhri, Alfin Husna Ridho Pangestu, Al-Anshari, Filzah Aulia

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