Qard financing models of the selected Islamic banks in OIC countries: a comparative analysis.

Abdellah Ali Ahmed, AL-Melahi and Adam Sa'ad, Auwal and Syed Jaafar Alhabshi, Syed Musa (2025) Qard financing models of the selected Islamic banks in OIC countries: a comparative analysis. In: International Conference on Business and Technology 2024, Oxford, United Kingdom.

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Abstract

Abstract. ThisstudyprovidesacomparativeanalysisofQarḍfinancingmodels in the selected Islamic banks in the Organisation of Islamic Cooperation (OIC), focusing on Qarḍ practices in each bank. The study includes five Islamic banks; (A, B, C, D, and E). Each bank uses a specific mechanism for disbursing Qarḍ to clients, including directly through the bank or microfinance centres. Addi- tionally, each bank has its financing sources for financing loans, which include shareholders, depositors, and non-permissible earnings. The study also addresses the purposes of Qarḍ financing in each bank, which include SMEs, commercial, people in need, and employees. Through the analysis of bank documents, reports, and expert interviews, this research highlights the similarities and differences in Qarḍ financing practices among the banks, offering insights into how these insti- tutions contribute to financial inclusivity and social welfare. The findings reveal that while all the banks share a commitment to providing interest-free loans, the specific models and implementation strategies vary significantly, influencing the effectiveness and reach of Qarḍ financing within their respective communities. This study contributes to a deeper understanding of the role of Islamic banks in promoting ethical and inclusive financial practices through Qarḍ financing.

Item Type:	Proceeding Paper (Invited Papers)
Uncontrolled Keywords:	Qarḍ Financing · Qarḍ al-Ḥasan · Islamic banks · OIC Countries
Subjects:	BPC Science and Technology in Islam BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	DR. Auwal Adam Sa'ad
Date Deposited:	18 Aug 2025 12:56
Last Modified:	18 Aug 2025 12:56
URI:	http://irep.iium.edu.my/id/eprint/122616

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