IslamicFinance.de

The Islamic Financial Services Board (IFSB) is adding financial inclusion to the industry's to-do list, launching initiatives aimed at widening the reach of sharia-compliant banking to include poorer people. After years of rapid growth, Islamic finance is under pressure from some scholars to build stronger credentials for social responsibility. One criticism is that it has neglected farmers, small traders and poor households. Guidance from the Kuala Lumpur-based IFSB could help address this issue in majority-Muslim countries where less wealthy people have stayed out of the formal banking system for religious reasons. The IFSB plans to include a dedicated work stream on financial inclusion in its new strategic performance plan 2016-2018.