Islamic microfinance scheme in the Maldives: 'faseyhamadadhu'
Though there are seven commercial banks operating in the country, there is no financial institution that is specialized in Islamic microfinance. However, funds received as foreign aid have been disbursed through the Bank of Maldives (BoM), the national bank as it is required by law to disburse such funds through a bank. The starting point that led to the formal existence of microfinance in the country is the enactment of the Small and Medium Enterprises (SME) Act (Law No. 6/2013) in 2013. The objective of this law was to help reduce poverty and related vulnerabilities as well as making the sector broad-based, innovative, resilient and internationally competitive. The enactment of this legislation proved the importance given to SMEs by the government at the policy level.
Islamic microfinance , Maldives
Muneeza, A. (2016). Islamic microfinance scheme in the Maldives: 'faseyhamadadhu' Islamic Finance News, 13(50), pp. 24-25.