IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/0411.html

Financial Sector Policy and Poverty Reduction in Sudan

Author

Listed:
  • Adam B. Elhiraika

    (Economic and Social Policy Division, UN Economic Commission for Africa)

  • Khalid Abu Ismail

Abstract

This paper examines the structure and performance of the financial sector in Sudan and its role in poverty alleviation. The Sudanese financial sector is largely rudimentary and dominated by banks that are extremely small, generally under capitalized and concentrated in big cities. Despite the full adoption of Islamic methods of finance, these banks are not prepared to promote lending for poverty reduction, while state-owned development banks are a failure in terms of outreach and viability. Financial sector reforms should be widened and deepened to foster both financial and real growth and a radical paradigm shift is imperative for developing a pro-poor financial structure involving both Islamic and conventional microfinance programs. A dual banking system will enhance the process of financial development and access to credit through increased competition and broader alternatives for clients. It is important to link microfinance programs to socio-economic institutions involved in poverty reduction such as Zakat and Awqaf funds in order to increase the efficiency of resource mobilization and use.

Suggested Citation

  • Adam B. Elhiraika & Khalid Abu Ismail, 2004. "Financial Sector Policy and Poverty Reduction in Sudan," Working Papers 0411, Economic Research Forum, revised 05 Jun 2004.
    • Handle: RePEc:erg:wpaper:0411
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2017/04/0411_final.pdf
    Download Restriction: no
    File URL: http://bit.ly/2nzNgoB
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Munawar Iqbal & David T. Llewellyn (ed.), 2002. "Islamic Banking and Finance," Books, Edward Elgar Publishing, number 2499.
    2. Adam B. Elhiraika, 1996. "Risk‐Sharing And The Supply Of Agricultural Credit: A Case Study Of Islamic Finance In Sudan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 390-402, January.
    3. Tariqullah Khan & Mohammad Umar Chapra, 2000. "Regulations and Supervision of Islamic Banks (Occasional Paper)," Occasional Papers 2000, The Islamic Research and Teaching Institute (IRTI).
    4. Zaman, Hassan, 2004. "The scaling-up of microfinance in Bangladesh : determinants, impact, and lessons," Policy Research Working Paper Series 3398, The World Bank.
    5. repec:wbk:wbpubs:28956 is not listed on IDEAS
    6. Daniel Hardy & Paul Holden & Vassili Prokopenko, 2003. "Microfinance institutions and public policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 147-158.
    7. Ayyagari, Meghana & Beck, Thorsten & Demirguc-Kunt, Asl, 2003. "Small and medium enterprises across the globe : a new database," Policy Research Working Paper Series 3127, The World Bank.
    8. Mr. Alexei P Kireyev, 2001. "Financial Reforms in Sudan: Streamlining Bank Intermediation," IMF Working Papers 2001/053, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bryane Michael, 2019. "The Case for an IGAD Development Bank," Journal of Development Policy and Practice, , vol. 4(1), pages 35-65, January.
    2. Zaman, Asad, 2008. "Islamic Economics: A Survey of the Literature," MPRA Paper 11024, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Al-Jarhi, Mabid, 2004. "Islamic Finance: An Equitable and Efficient Option," MPRA Paper 55765, University Library of Munich, Germany.
    2. ., 2014. "Challenges facing the Islamic financial industry," Chapters, in: Morality and Justice in Islamic Economics and Finance, chapter 7, pages 193-238, Edward Elgar Publishing.
    3. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    4. Beck, Thorsten & Demirgüç-Kunt, Asli & Singer, Dorothe, 2013. "Is Small Beautiful? Financial Structure, Size and Access to Finance," World Development, Elsevier, vol. 52(C), pages 19-33.
    5. Ben Amar Amine & Ikrame Ben Slimane & Makram Bellalah, 2017. "Are Non-Conventional Banks More Resilient than Conventional Ones to Financial Crisis?," Working Papers hal-01455752, HAL.
    6. Leif Atle Beisland & Roy Mersland & Trond Randøy, 2014. "Microbank Regulation and Earnings Quality: A Global Survey," Palgrave Studies in Impact Finance, in: Roy Mersland & R. Øystein Strøm (ed.), Microfinance Institutions, chapter 14, pages 271-293, Palgrave Macmillan.
    7. Epstein, Brendan & Finkelstein Shapiro, Alan, 2017. "Employment and firm heterogeneity, capital allocation, and countercyclical labor market policies," Journal of Development Economics, Elsevier, vol. 127(C), pages 25-41.
    8. Adam B. Elhiraika, 1998. "Macroeconomic Instability, Financial Repression and Islamic Banking in Sudan," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 6(2), pages 61-86, December.
    9. Thorsten Beck, 2003. "Small and medium enterprises, growth, and poverty : cross-country evidence," Policy Research Working Paper Series 3178, The World Bank.
    10. Claude Berthomieu & Anastasia Ri, 2009. "Process and Effects of Financial Liberalization in Transition Countries: A Selective Literature Survey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(4), pages 453-473, December.
    11. Khandker, Shahidur R. & Khalily, M. A. Baqui & Samad, Hussain A., 2010. "Seasonal and extreme poverty in Bangladesh : evaluating an ultra-poor microfinance project," Policy Research Working Paper Series 5331, The World Bank.
    12. Igor Goncharov & Martin Jacob, 2014. "Why Do Countries Mandate Accrual Accounting for Tax Purposes?," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 52(5), pages 1127-1163, December.
    13. World Bank, 2003. "Sudan - Stabilization and Reconstruction : Country Economic Memorandum, Volume 1. Main Text," World Bank Publications - Reports 14622, The World Bank Group.
    14. Hasan, Zubair, 2012. "Incentive-compatible sukukmusharkah for private sector funding: Comment," MPRA Paper 41916, University Library of Munich, Germany.
    15. Leonardo Becchetti & Stefano Castriota & Pierluigi Conzo, 2012. "Bank Strategies in Catastrophe Settings: Empirical Evidence and Policy Suggestions," CSEF Working Papers 324, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    16. Conor O'Toole & Carol Newman, 2012. "Investment Financing and Financial Development: Firm Level Evidence from Vietnam," The Institute for International Integration Studies Discussion Paper Series iiisdp409, IIIS.
    17. Beisland, Leif Atle & Mersland, Roy & Randøy, Trond, 2014. "The Association between microfinance rating scores and corporate governance: a global survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 35, pages 268-280.
    18. Cattelan, Valentino, 2014. "In the name of God: Managing risk in Islamic finance," eabh Papers 14-07, The European Association for Banking and Financial History (EABH).
    19. Andrew C. Worthington & Alsadek H. Gait, 2009. "Libyan Business Firm Attitudes towards Islamic Methods in Finance," Discussion Papers in Finance finance:200910, Griffith University, Department of Accounting, Finance and Economics.
    20. Mateja Drnovšek & Alenka Slavec & Darija Aleksić, 2024. "“I want it all”: exploring the relationship between entrepreneurs’ satisfaction with work–life balance, well-being, flow and firm growth," Review of Managerial Science, Springer, vol. 18(3), pages 799-826, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:0411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Namees Nabeel (email available below). General contact details of provider: https://edirc.repec.org/data/erfaceg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.