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Rural Development Scheme Of Islami Bank Bangladesh Limited (Ibbl): Assessment And Challenes


  • M. Mizanur Rahman
  • M. Jafrullah
  • ANM Tawhidul Islam


Islami Bank Bangladesh Limited (IBBL) launched a shar¥cah based Microfinance program named Rural Development Scheme (RDS) in 1995, to uplift the overall socioeconomic plight of the rural poor. Presently, some 0.52 million group members of which 94 percent are female, are involved in this scheme. Before further expansion into new areas, an assessment of the achievement of the RDS and its impact on the livelihood of the rural people was required. To conduct this study, primary data were collected interviewing 1020 randomly selected RDS clients working across the country. The study analysed many facets of the RDS and concludes that it was generally a success. Household income and expenditure had increased significantly and clients had a positive opinion towards the microinvestment programme as it improved their standards of living. The study recommends that RDS activities be extended towards hardcore poor, especially for widows and divorcees. Monitoring and supervision should be strengthened, while more ethical and moral motivational programs have to be undertaken for both field supervisors and clients to reduce shar¥cah violation. The programme can be replicated in other rural areas of Bangladesh in order to accelerate economic activities of the poor.

Suggested Citation

  • M. Mizanur Rahman & M. Jafrullah & ANM Tawhidul Islam, 2008. "Rural Development Scheme Of Islami Bank Bangladesh Limited (Ibbl): Assessment And Challenes," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 16(2), pages 139-163, December.
  • Handle: RePEc:ije:journl:v:16:y:2008:i:2:p:139-163

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    References listed on IDEAS

    1. Hasan, Zubair, 2005. "Islamic banking at the crossroads: theory versus practice," MPRA Paper 2821, University Library of Munich, Germany.
    2. Zaman, Asad, 2008. "Islamic Economics: A Survey of the Literature," MPRA Paper 11024, University Library of Munich, Germany.
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    More about this item


    Shar¥cah based microfinance; Rural development; Bangladesh.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion


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