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Rural development scheme of Islami Bank Bangladesh Limited - A study on its growth, effectiveness and prospect in Bangladesh

Author

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  • Mohammad Saleh JAHUR

    () (University of Chittagong, Bangladesh)

  • S. M. Nasrul QUADIR

    () (University of Chittagong, Bangladesh)

Abstract

Most of the people of Bangladesh are living under poverty line. To alleviate poverty, thousands of NGOs and GOs have been working since the inception of the Bangladesh. But the success rate of these programs appears to be insignificant. Rural Development Scheme (RDS) being a shariah and teaching of Islam based technique has been introduced in order to graduate the rural poor from poverty trap by bringing them in the main stream of economy by providing micro-credit and teaching for value creation. The present study has been undertaken aiming at evaluating the effectiveness of the program and its prospect. It has collected both primary and secondary data, and analyzed these with the help of both financial and statistical techniques. The findings of the study are: the growth performance of RDS in important parameters are robust across study period, and RDS influence the income and income generating activities of borrowing members significantly. Finally the study has put forward some logical suggestions for enhancing the sustainability as well as robustness of the program.

Suggested Citation

  • Mohammad Saleh JAHUR & S. M. Nasrul QUADIR, 2010. "Rural development scheme of Islami Bank Bangladesh Limited - A study on its growth, effectiveness and prospect in Bangladesh," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(2), pages 283-299, December.
  • Handle: RePEc:rom:econmn:v:13:y:2010:i:2:p:283-299
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    References listed on IDEAS

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    1. Alam, Shaista & Fatima, Ambreen & Butt, Muhammad S., 2007. "Sustainable development in Pakistan in the context of energy consumption demand and environmental degradation," Journal of Asian Economics, Elsevier, vol. 18(5), pages 825-837, October.
    2. Tamazian, Artur & Chousa, Juan PiƱeiro & Vadlamannati, Krishna Chaitanya, 2009. "Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries," Energy Policy, Elsevier, vol. 37(1), pages 246-253, January.
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    More about this item

    Keywords

    Rural Development Scheme; investment; income; deposits; members and IBBL.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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