Application of a distributed verification in Islamic microfinance institutions:a sustainable model  

作　　者：Peter Wanke M.Kabir Hassan Md.Abul Kalam Azad Md.Azizur Rahman Naznin Akther 

机构地区：[1]COPPEAD Graduate Business School,Federal University of Rio de Janeiro,Rua Paschoal Lemme,355,Rio de Janeiro 21949-900,Brazil [2]Department of Economics and Finance,University of New Orleans,New Orleans,LA 70148,USA [3]Department of Business and Technology Management,Islamic University of Technology,Gazipur 1704,Bangladesh [4]Department of Business Administration,Faculty of Business&Entrepreneurship,Daffodil International University,Dhaka,Bangladesh

出　　处：《Financial Innovation》2022年第1期2196-2207,共12页金融创新（英文）

摘　　要：The literature gap in microfinance paradox of double bottom line(financial performance vs.outreach)has always been an interesting area of research.This paper proposes a theoretical model most suitable for Islamic Microfinance Institutions(MFIs)which enables Islamic MFIs’to operate together with the existing financial models compliant with Islamic Shariah Law.This model is based on a distributed verification/decision-making process that might be realized(but not necessary)through block-chain.Among the available distributed verification techniques,blockchain technology is an attractive emerging computing paradigm due to its decentralized,immutable,shared,and secure data structure characteristics.This model proposes three significant propositions.First,sharing information through blockchain will allow a transparent network in MFI operations,which will raise confidence for donors resulting in a causal effect of a relatively lower profit rate to be charged by the MFIs.Second,the consensus mechanism will enable risk-sharing,a character of Islamic finance;thus,the MFIs will operate without any collateral for low-risk firms.Third,the double bottom line of MFIs’long-lasting paradox would be solved.As for practical implication of this proposed model,the causal impact of lower cost investment by the lenders would increase social welfare because of no collateral and no initial wealth requirement.The proposed model proposes a credit rationing approach where profit can be negative.No collateral will be used when calculating the creditworthiness of a borrower.

关 键 词：Blockchain Islamic microfinance Double bottom line Distributed verification 

分 类 号：F832[经济管理—金融学]