Village Banks Research Articles

Impact of increasing the supply of rural finance on agricultural total factor productivity: Evidence from China

We examine the impact of increasing the supply of rural finance on agricultural total factor productivity through the village banking program in China. Using county-level panel data spanning from 2000 to 2016, we apply the staggered difference-in-differences model and find a significant improvement in agricultural total factor productivity associated with the village banking program. Further mechanism analysis shows that the village banking program contributes to the improvement in agricultural total factor productivity by facilitating the migration of rural labor to urban areas and agricultural mechanization. Moreover, this effect is more pronounced in western, northern and low-income counties. This study shows that increasing the supply of rural finance can increase agricultural productivity.

How the method for delivering loans impacts on the economic efficiency of microfinance institutions

AbstractThe aim of this research has been to analyse how the method employed for lending can affect the cost efficiency of microfinance institutions (MFIs) since innovations for lending have been introduced in the sector in the last years and there are not empirical studies to analyse the actual impact of it. The improvement of MFIs' cost efficiency is very important for these institutions to achieve their financial self‐sufficiency and be sustainable in the long run. The data employed in this analysis have been an unbalanced panel composed of a sample of 1017 MFIs for the 2008–2018 period and collected from the microfinance information exchange (MIX) database. Our results also show that community or group‐lending methods, as village banking and solidarity groups, have a positive effect on the MFIs’ cost efficiency versus traditional methods based on individual lending. In addition, we have found that MFIs with a higher proportion of borrowers in rural areas are more cost efficient than institutions with more borrowers in urban areas, although community or group‐lending methods have a larger positive effect on MFIs’ cost efficiency in urban than in rural areas.

The village bank of a Lisu community: Indigenous belief, economic practices, and environmental conservation in Southwest China

Using the rotating credit association created by a Lisu village, called the “village bank,” this study explores the social forces that have shaped, limited, or activated the ethnic community’s local environmental agency in southwest China. We argue that while the inherited elements of the Lisu indigenous beliefs could help local communities meet the ecological needs of our time, offering different ethics and perspectives to challenge the pursuit of material abundance based on extractive economic modes, the Lisu’s social and economic behavior is not solely determined by their religious beliefs. In the post-Mao economic reform era, village banks have become a fresh way through which Lisu villages activated their environmental agency, trying to achieve a balance between environmental protection and poverty reduction. Lisu’s “ambivalent” stance on environmental protection reflects the interactions between state-orchestrated development, NGOs, and the tension between maintaining tradition and reducing poverty.

Factors That Influence the Use of Accounting Information Systems

Quality of the company's annual financial reports does not only depend on the company's personal factors but also on effectiveness of the use of systems. From economic point of view, people of Sukawati are more involved in trading.Therefore, the existence of a village lending institution is necessary to support the business capital. Village Bank is a village-owned financial institution that performs financial functions and manages the funds belonging to the village in the form of savings and loans. It sets out the goals for investigating the factors influence the effectiveness of using accounting systems. Research approach uses a sampling approach that involves multiple linear regression evaluations and the use of random samples of interest. These survey patterns are staff using accounting data gadgets in credit status organizations in the Skawati district village. The results indicate that individual skills, user involvement, internal control, and organizational culture have positif effect to use Accounting Information Systems.

Challenges of Crowdfunding (Village Banking) in Zambia: Solutions and Opportunities

Crowdfunding is a new phenomenon that has piqued the curiosity of academics and practitioners alike, owing to its potential as a source of alternative finance. It is considered a mechanism with significant potential for expanding access to finance for entrepreneurs in developing economies. One such platform in Zambia is known as “Village Banking”. Village banking has been discovered to be the most profitable platform in Zambia, outperforming even traditional risk-free platforms such as micro-financing. Village banking has enabled business growth, idea realization, and has generally improved the lives of many participants. The risks associated with the village banking system, on the other hand, have been increasing. As the popularity of crowdfunding has increased, so have the challenges and opportunities. In this paper we employ a systematic literature review that defines crowdfunding, its properties, discusses the challenges, opportunities of Crowdfunding specifically the Village Banking platform. In addition, we conducted a survey to determine the main challenges faced by Village Banking participants in Zambia. The results of the survey identified the following primary challenges; online infrastructure, trust, monitoring of payments, tracking of collections, and approval of payments. Based on literature reviewed and survey conducted, we proposed the use of blockchain technology to address some of the challenges identified.

Role of Rural Banks in the Development of Self-Help Groups

Majority of the population of Rajasthan lives in rural areas. Before independence, debt payments were made by moneylenders and Nagar Seth. After the establishment of the Village Bank on October 2, 1975, they were entrusted with the task of disbursing village loans. Rural banks provide individual and group loans for rural development under various schemes. This includes self-help groups. In this group, the village bank plays a positive role in the development of the rural economy by collecting small savings of women and men and providing them in the form of group loans. In addition to savings, discussions on problem solving and development at the village level also started at the Self Help Group meeting. Self-help groups play an important role in empowering women. As the living standards of these groups of farmers and herdsmen improved, self-employment increased. Currently, there are two rural banks operating in Rajasthan, namely Rajasthan Marudhara Gramin Bank and Rajasthan Kshetriya Gramin Bank of Baroda. With the cooperation with the village bank in developing self-help groups at the village level, the economic and living standards have also improved by increasing the savings and living standards of the residents.

Analysis of the Allocation of Priorities for the Use of Government Spending in Underdeveloped Regions in Indonesia

Indonesia is a developing country with one of the most substantial economic growths in the Asian region, in 2021, it will be able to register a growth reaching 5.44%. With rapid economic growth, it turns out that in Indonesia, many areas are still considered underdeveloped. The government continues to pursue various policies to support the development of Indonesia, one of which is Permendes number 13 2021, which explains that the use of village funds in 2021 is a priority to manage the covid pandemic and n is not permitted for the development of village infrastructure. This needs to be considered whether its application is appropriate or not. This study uses the Sem-PLS method, which examines the use of village funds against three criteria: the Facilities/Infrastructure, Economy, and HR. The results are that the village banks have the most significant effect on HR criteria, with a percentage of 20%, followed by economic criteria, with a ratio of 15%. Meanwhile, village funds have no significant effect on the facilities/infrastructure criteria, with a percentage of only 11.5%. The Facilities/Infrastructure criterion has little impact because, in disadvantaged regions, there is the problem of the uncertainty of the documents, leading to delays in the verification process. The government can overcome this by developing organizational strategies in underdeveloped areas so that such incidents do not occur. The government can use the results of this study to see what influence village funds have spent on underdevelopment criteria in underdeveloped areas.

Eksistensi kampung dalam perspektif ekologis (Studi di Kampung Tering Lama Kabupaten Kutai Barat)

The land of a river bank village of Tering Lama continues to erode, and it could cause this village to disappear. This research attempts to study the factors that influence its existence in order to survive. This study uses a qualitative descriptive research method to determine such factors. The study found that there are some influentual factors, namely traditions, habits, social interaction, environmental conditions, and the role of the government. The most determining ones are the environmental conditions and the role of the government. In fact, while some have left the river bank area, a considerable number of people of Tering Lama village can still survive from degraded environmental conditions such as landslides because they are very enthusiastic in protecting the environment to preserve their traditional culture that has existed for so long. In cooperation with village government, their important effort was placing sand bags in the eroded river bank as sheet pile. Recently, they had been supported by the district government by constructing gabion wire as sheet pile. All of these ecological efforts are of importance in preserving their culture and tradition.

Studi Literatur Skema Pembiayaan Lembaga Keuangan Mikro Syariah


 Financing schemes carried out by Islamic microfinance institutions continue to face challenges with the development of these institutions. A unique financing scheme with a prohibition on interest-based financing. The literature study used in this study used data in the form of Scopus indexed articles. Data containing content related to financing schemes for Islamic financial institutions was selected with a total of 18 articles. Furthermore, the stages of research are carried out as described in the research methodology. The findings of this study describe two main financing schemes carried out by Islamic financial institutions, namely: The first scheme is Profit and Loss Sharing (PLS) with mudharabah, musyarakah, muzara'ah and muzaqat contracts. The second scheme is non-PLS, which includes murabahah, bai' salam, ijarah and qard al-hasanah. Other findings in this study describe Islamic MFI financing schemes in several countries such as: in Indonesia there are two financing principles in Islamic MFIs, namely equity financing using PLS mechanisms such as: mudharabah and musyarakah. The second principle is debt-based financing using a non-PLS mechanism. While in Bangladesh the Grameen Bank model was developed, but it is considered not to meet Islamic sharia because it still uses interest. Furthermore Kalanjiam financing scheme in India which is quite successful. Finally, in Latin America and Africa, the village bank model has been successfully implemented in accordance with sharia in Jabal al Hoss, Syria.
 Keywords: LKMS, Financing, Literature Study

Dromoelimination: Accelerating settler colonialism in Palestine

This paper examines the eliminatory speed of Israeli settler colonialism, particularly the ways in which settler organizations aim to accelerate the pace of elimination at the colonial frontiers in Palestine. We show, by focusing on the settler NGO Regavim, how such settler entrepreneurs constantly develop new techniques that challenge the slow and creeping eliminatory pace of state’s administrative, legal and security bodies with an intensifying eliminatory speed we call ‘dromoelimination’. By closely elaborating the ongoing events in the West Bank village of Susiya, we argue that dromoelimination operates, firstly, through accelerative state-settler dynamics that traverses beyond the eliminatory functions of the state while at the same time fundamentally reconfiguring them; and secondly, by turning Palestinian life and struggle against dispossession, forced displacement and destruction increasingly vulnerable to intensified temporalities of ‘depleting time’. Settler colonialism, we contend, becomes comprehensible in a more tangible, complex and spatially nuanced terms when looked through the speed and pace of its movement: that is, through intensified and accelerated eliminatory rhythms – of dromoelimination.

Optimizing The Performance Of Village Owned Enterprises

This study aims to build a model for optimizing the performance of Village Owned Enterprises in the West Halmahera Regency. As a result of all that the existence of BUMDes has not been able to contribute to Village Original Revenue and improve the welfare of the village community as expected by the Village and the Community. To achieve this goal, the researcher used a qualitative approach with descriptive analysis methods. The results study found two findings that were effective for optimizing the performance of BUMDes. The first finding is that BUMDes must ensure market opportunities, availability of raw materials, product competitiveness, and product uniqueness to develop it is business. The second finding, using the AHP method, it is recommended that the Village of Guaemaadu develop the superior potential of the coastal tourism-based village industry; Hydroponic Farming; Coconut oil; Village Shop; Crafts from Bamboo; Coconut Collector; Hospitality; Processed Bananas; Nature Tourism and Village Bank.

Financial Inclusion: A Case of Village Banks in Malawi

Financial Inclusion: A Case of Village Banks in Malawi

دراسة الجدوى الاقتصادية لإنتاج خل التفاح في محافظة اللاذقية – سورية

إنّ وجود فائض من محصول التفاح، وازدياد مشكلة تسويقه في حال تعرّض الموسم لظروف جوية سيئة، يجعل الحل الأمثل لمواجهة هذه المشكلة بتصنيع خل التفاح، إذ يبرز مشروع تصنيع خل التفاح كنموذجٍ مهمٍ لتطبيق المشاريع الزراعية الصغيرة في سورية، خلال المرحلة القادمة، لذا هدف البحث إلى دراسة الجدوى الاقتصادية لمشروع تصنيع خل التفاح في مناطق زراعة التفاح ضمن المحافظة اللاذقية في سورية. ولتحقيق أهداف البحث تم استخدام المنهج الوصفي ومنهج دراسة الحالة، لدراسة فرضيات الدراسة والتي من أهمها وجود جدوى اقتصادية لتصنيع خل التفاح، من عدم وجود جدوى، وقد توصل البحث لعدد من النتائج من أهمها وجود جدوى اقتصادية من المشروع، فقد بلغ معامل الريعية استناداً لرأس المال المستثمر 47.53%، واستناداً لتكاليف الإنتاج 115.03%، بينما بلغ معامل الربحية استناداً لرأس المال المستثمر 44.49%، وبالنسبة لتكاليف الإنتاج 107.67%، وزمن استعادة رأس المال المستثمر 1.37 سنة. أي أنّ هذا المشروع، ويحقق قيمة مضافة، خاصّة للتفاح غير الصالح للتسويق، ختم البحث بعدد من التوصيات من أهمها أنّه يجب العمل على تشجيع المستثمرين الزراعيين للدخول ضمن هذا المجال من خلال توفير القروض عن طريق بنوك القرى أو التنمية أو مشاريع الصغيرة، وتأمين سوق تصريف لمنتجاتهم، وفتح أسواق جديدة خاصة في مجال التصدير.

Model Penerapan Akad Transaksi Syariah Pada BUMDes Pengalangan Sejahtera Dalam Masyarakat Pluralisme

<div class="page" title="Page 1"><div class="layoutArea"><div class="column"><p><span>This research aim to determine the implementation model of sharia transaction contracts based on Fatwan DSN MUI and SAK Syariah at BUMDes Pengalangan Sejahtera. This study explain the application of sharia transactions in a pluralistic society to find out the understanding and interest of the community become a customer of a village bank based on sharia principles. The method used in this research is descriptive qualitative method with secondary and primary data. Supporting data collection was carried out by field studies through interviews, observation and documentation. The results of this study indicate that the implementation of the contract on BUMDes transactions is not in accordance with the Fatwa of the MUI and SAK Syariah DSN, so the researchers provide results in the form of a sharia contract implementation model in accordance with the various types of financing products applied by village banks to BUMDes Pengalangan Sejahtera. In general, the non-conformity of SAK Syariah lies in the preparation of BUMDes financial statements where there is no difference between recognition, measurement, presentation and disclosure. Meanwhile, according to the MUI DSN Fatwa, the non-conformity lies in several applicable provisions.</span></p></div></div></div>

Using financial diaries to understand the economic lives of HIV-positive pregnant women and new mothers in PMTCT in Zomba, Malawi.

BackgroundEconomic strengthening (ES) interventions can address economic barriers to retention and adherence (R&A) to antiretroviral therapy in prevention of mother-to-child transmission (PMTCT) services. To inform tailoring of ES activities for PMTCT, we used financial diaries to understand the economic lives of women in PMTCT and examine associations between participants’ finances and their R&A.MethodsWe collected financial data from a stratified sample (n = 241) of HIV-positive pregnant women and new mothers enrolled in PMTCT from three clinics in Zomba, Malawi. For 30 weeks, participants met with staff to record cash and in-kind inflows and outflows. We used clinical records to calculate a measure of R&A for each participant. We summarized diary data using R and used cox proportional hazard models to examine the relationship between R&A and participant characteristics and behavior.ResultsThere were 68,097 cash transactions over 30 weeks, with 10% characterized as inflows. The median value of cash inflows was US$3.54 compared with US$0.42 for cash outflows. Fewer than 7% of total transactions were considered related to PMTCT, with the majority classified as food or drink. Participants in the rural site had the lowest hazard of non-adherence. Decreased hazard of non-adherence was also linked to having dependents and years on ART. There were significant differences in cash inflows and outflows between those who were always adherent and those who were not.ConclusionsFinancial inflows were large and erratic, whereas outflows were small but consistent. PMTCT expenses comprised a small proportion of overall expenses and focused on proper nutrition. The influence of inflows and outflows on adherence was significant but small; however, always adherent participants demonstrated smoother inflows and outflows, indicating an association between greater adherence and economic stability. Participants would benefit from interventions that bolster and stabilize their economic lives, including income generating activities in the agricultural industry and inclusion in village banks.

Analysis of Transparency and Accountability of Village Funds’Financial Management: a case study in Banyumas

The purpose of this study was to identify the transparency and accountability of village funds’financial management. This research was conducted by exploring the implementation of Law No. 6/2014 from the perspective of village officials in Banyumas Regency. This research approach is qualitative with a case study method. Data collection was carried out using participatory observation approaches, in-depth interviews, documentation of evidence, and focus group discussions. The research was conducted on village officials in 20 villages from 4 districts in Banyumas. The results showed that transparent and accountable village financial reporting by the village head and village officials by Law No.6 of 2014 concerning villages, was still low. About budget accountability, there are still many villages that have not drafted village regulations related to village financial management policies. The results of interviews with village secretaries showed that only six villages admitted that they had not compiled it, but based on the results of the documentation analysis carried out there were ten villages that had not compiled it. Thus, as many as fifty percent of the total study villages had not yet compiled village regulations related to village financial management. This shows that the village financial rules, in the village income and expenditure budget, have not yet made village regulations as a basis for carrying out an activity when getting funds. Other findings are that reports of village property, village regulations on village financial management, treasury accountability reports, tax books, village bank books, are not available. This indicates that the budget use recording system and procedures are not integrated with the financial records that should be owned and used in the village government. The obstacle faced is the lack of availability of human resources who understand the governance and accounting information system of village funds

Model Praktik Lembaga Keuangan Mikro Syariah dalam Pemberdayaan UMKM di Masa Pandemi Covid-19

Micro, Small and Medium Enterprises (MSMEs) are components of business actors that play a significant role in improving the national economy, both in terms of gross domestic product, employment, or investment. This study aims to analyze the practice model of Islamic Microfinance Institutions in Empowering MSMEs in Indonesia. Analytical descriptive is used to describe the model. The findings of this study explain that the performance of microfinance for strengthening MSMEs has been good. From the aspect of capital, LKMS has been able to increase capital for MSMEs, so that the quantity of MSMEs production increases. There are several micro-financing models for strengthening MSMEs that may be applied by Islamic financial institutions, namely the solidarity group model, the village banking model, the grameen model, and the individual model.

Sosialisasi Sejarah Bank Perkreditan Rakyat (BPR) Dan Bank Perkreditan Rakyat Syariah (BPRS) Kepada Alumni Pondok Al-Iman Yang Berada Di Palembang

Rural Banks are bank financial institutions, which accept deposits only in the form of time deposits, savings, and / or other equivalent forms and channel funds as an RB business. The People's Credit Institution originated in the Dutch colonial period in the 19th century, with the formation of the Village Lumbung, Village Bank (BD), Bank Tani (BT), and Bank Dagang Desa (BDD), with the aim of helping farmers, employees and laborers to releasing themselves from the trap of moneylenders (loan sharks) who are said to provide loans with high interest rates. With the issuance of Law no. 7 concerning Banking of 1992 (Law No. 7/1992 concerning Banking) provided a clear legal basis as a type of bank other than commercial banks. According to Law no. 7/1992 concerning Banking Non-bank financial institutions that have obtained a business license from the minister of finance may adjust their business activities as a bank.

How Women are Benefiting from Village Banking. A Case of Katuba Constituency

How Women are Benefiting from Village Banking. A Case of Katuba Constituency

A Study of the Factors Affecting Small and Medium Enterprises (SMEs) Access to Finance. A Case of Lusaka Based SMEs

This study examined some factors that affect Small and Medium Enterprises (SMEs) access to finance. It was done in order to further understand the constraints facing SMEs in accessing finance in Lusaka. The study intended to achieve the following objectives: to examine the extent to which collateral requirements affect SMEs access to finance, to examine the extent to which interest rates affect SMEs access to finance and to examine the extent to which other factors affect SMEs access to finance. The study research questions were formulated to find out the extent to which collateral and interest rates affect access to finance and what other factors do SMEs consider as affecting their access to finance. The study used a mixed method approach (Qualitative and Quantitative research methods) in order to come up with the study findings. The study shows a positive correlation between lack of collateral assets and rejection of credit (r = 0.727) and interest rates (r = 0.202) variables. In view of the study findings, the study recommends that SMEs make use of practical and unconventional means of alternative sources of finance, given the challenges faced with traditional sources of finance. Crowd funding has been recommended as it comes in many forms. Specifically, a form of crowd funding called “Village Banking” can be leveraged on by SMEs. The study also recommends group partnering of SMEs in order for them to create a critical mass for their operations and in order for them to enjoy economies of scale for their businesses. In addition to the above, SMEs are encouraged to improve on their business record keeping such as cash flows and income statements in order for them to attract potential sources of finance such as venture capital investors and/or angel investors. Further research should focus on strategies of how SMEs can finance their operations without entirely depending on borrowing from financial institutions. The study would combine both qualitative and qualitative methods in measuring causality of the associated factors and how they influence SMEs performance by carrying out more sophisticated analysis using statistical software.