HOW DIFFERENT IS ISLAMIC BANKING FROM THE TRADITIONAL BANKING?

Introduction “Conventional banking is essentially based on the debtor-creditor relationship between the depositors and the bank on one hand, and between the borrowers and the bank on the other. Interest is considered to be the price of credit, reflecting the opportunity cost of money. Islamic law considers a loan to be given or taken, free of charge, to meet any contingency.  Thus, in Islamic Banking, the creditor should not take advantage of the borrower. When money is lent on the basis of interest, more often than not, it leads to some kind of injustice. The first Islamic principle underlying for […]

Continue Reading

WHAT IS IN YOUR NAME?

INTRODUCTION A few weeks ago, I touched on the meaning of the name and I borrowed from Latin axiom – “Nomen est omen” which translates “Your name is your destiny”. That is an understatement. I also went on to give a little background of my pen name “Silverman” which originates from Acts 3:6 in the Bible. Today we shall look at your surname, your first name and clarify a lot of issues surrounding fate or karma as others called it. And everything is contained in your name…! ORIGIN OF YOUR SURNAME Our surnames link us back to our places of […]

Continue Reading

SILVERMAN PRICING: A DIFFERENT APPROACH TO PRICING

Introduction Over the past few months, I carried a brief analysis on my website and noticed that the most-read article ever written by me is – How to Price Your Products and Services. It receives 338 reading over the year. This is followed by a relatively new article – the Capital Adequacy of Banks and MFIs which received 165 readerships. Overall, 2,755 readers were polled through various channels. As an author, I see what people are interested in reading and would like to evoke my strategy. But before I do so, I would like you to read just two of the […]

Continue Reading

YOUR BOTTOM-UP PLANNING APPROACH

Introduction There are two approaches to handling annual budgets of institutions. We have what we call the Top-Down Approach and Bottom-Up Approach. Top-Down Approach With this approach, the budget is set at the Senior Management level and imposed on the various units and departments to deliver. In order words, the Senior Management decides the budget and the down/line managers must deliver according to the direction. Bottom-Up Approach This is the opposite of the above. With this approach, line managers in consultation with their staff sit down and decide their budget. This budget is submitted to Senior Management for approval. The […]

Continue Reading

MICROFINANCE: A Textbook of Microfinance for Schools, Colleges and Practitioners

Microfinance has been used over the years in fighting rural poverty and removal of ignorance. As a tool of poverty alleviation, and adopted by the World Bank and other donor assisted funds, its operation cannot be over-emphasised. But the topics in microfinance are not easy to digest and cannot be traced to one coherent, comprehensive and concise source. Learners and practitioners have to use various research materials to be able to elicit what they need. More often than not, most research materials are either too deep or just inadequate for learners. The middle is always the short-cuts, that is, points […]

Continue Reading

THE MICRO-FINANCE TEXTBOOK: A BACKGROUND REFLECTION

In April this year, one of the South East Asian countries was terribly hot when arrived there for a programme.  But on top of that, a little surprise was added to it….! The teaming Buddhist youth lined up on the streets with water cannons or buckets of water. The purpose? To pond you! It was a Water Festival time throughout all the Buddhist nations. So in order to avoid being ponded or baptized, I went into hiding for two weeks. This two weeks of hiding offered me reflections on my life. From my step-mother’s kenkey business in my okra-village to […]

Continue Reading

COLLATERAL MANAGEMENT – Part 1

Introduction Collateral management is not very popular in the microfinance sector. This is due to the fact that, the loan sizes are small and clients are largely expected to be in groups. Where individual methodology is applied, other methods of collateralisation – receivables or inventories from clients are used instead of fixed assets. Collateral management is common in the mainstream banks and other big financial institutions. They have the resources, expertise and systems to monitor and manage collaterals for their clients. On the whole, MFIs that take collateral also experience large defaults on their loans. This is due to three […]

Continue Reading

THE HUMAN RESOURCE FUNCTION OF THE MFI

Introduction At the right-hand side of every MFI’s wing is human resources and administration. These two functions are effectively combined or separated depending on the size and nature of the organisation. While the human resources and administration function could be described as the engine oil that ensures that the engine is effectively running, the operations unit is seen as the engine in charge of the production. MFIs must begin to formalise their systems as the organisation grows. Job descriptions must be developed and revised as new positions are added and responsibilities multiply. Branch and head office structures evolve to support […]

Continue Reading

THE CENTRE: ACCOUNTING AND FINANCE ROLE OF THE MFI

Introduction At the centre of every institution are finance and accounting functions. As the ‘receivers and payers’ in every institution, the finance and accounting cannot be overlooked even into the foreseeable future where people are advocating machines, robots and the rest. Finance and accounting roles can never depart from any institution, it shall only revolve, evolve and adapt to the changing needs of the time. As one of the oldest administrative and back-office roles, this function can be described in the microfinance and banking sectors as the planners, executors of the plans and back-stoppers in relation to risk management. In […]

Continue Reading
1 2 3 6