Complementarity Analysis Islamic Banks / Microfinance Institutions in Senegal

Main Article Content

Massamba Souleymane SECK


The purpose of this article is to assess the use of the complementary relationship between the Islamic Bank of Senegal and microfinance institutions in the SME financing process. Currently in Senegal, the constraints on the financing of SMEs are intensifying more and more and continue to limit state policies in the process of promoting sustained economic growth for lack of funding model that responds effectively to investment needs of the latter. In this perspective of marginalization of SMEs by traditional financial intermediaries’ especially traditional banks, the importance of using Islamic Bank / MFI complementarity could be a solution to such a situation of under-financing of SMEs. This new funding model can have a downward impact on transaction costs, reduce risk management and increase the medium- and long-term volume of credit available to SMEs. It would thus promote the financial and social inclusion of Senegalese SMEs. This new funding model can have a downward impact on transaction costs, reduce risk management and increase the medium- and long-term volume of credit available to SMEs. It would thus promote the financial and social inclusion of Senegalese SMEs.


Download data is not yet available.


Metrics Loading ...

Article Details

How to Cite
Souleymane SECK, M. (2019). Complementarity Analysis Islamic Banks / Microfinance Institutions in Senegal. International Journal for Innovation Education and Research, 7(4), 423-443.
Author Biography

Massamba Souleymane SECK, The University of THIES, Senegal

PhD student in Economics and Social Sciences, Doctoral School of Sustainable Development and Society (ED2DS)


Aghion, P. and Bolton, P. (1997): "A Theory of Trickle-Down Growth and Development," Review of Economic Studies vol.64, No. 2, p.151-172.
Alcorn M. C., "China city commercial banks: opportunity for microfinance delivery?" CGAP, October, 2005.
Aoki, M. (1986), Horizontal vs. Green Information Structure of the Firm. American Economic Review, vol.76, n.05, pp. 971-983.
_(1988). Information, Uncertainty, and Bargaining in the Japanese Economy. Cambridge University Press, trad. Fra., Economica, 349 p.
Bain, J. 1956, Barriers to New Competition: Harvard University Press (Reprinted 1993 by Augustus M), December, pp.229-242.
World Bank, 2006. Making Finance Work for Africa, World Bank.
Barro, M., 2005, "Microfinance and Financial Development," Michigan Journal of International Law, Vol. 26, pp.271-96.
Bell R. et al., 2002, Can Commercial Banks Microfinance? Lessons from the Commercial Bank of Zimbabwe and the Co-operative Bank of Kenya, Small Enterprise Development Journal (SED), vol.13 (4), December.
Bond, Ph., Rai, A., (2009), "Borrower Runs," Journal of Development Economics, Vol. 88, pp.185-191.
Causse-Broquet, G. (2007), Why be interested in Islamic Finance: the point of view of a teacher-researcher, La Revue du Financier, France, pp30-39.
Chou, K., "Three simple models of social capital and economic growth" (2006), in Journal of Socio-Economics, No. 35, pp. 889-912.
Christen R. P., 2001, Commercialization and Mission Drift: The Transformation of Microfinance in Latin America, CGAP, Occasional Paper No. 5, March.
Clarke, G., Cull, R., Martinez Peria, S.M., Sánchez, S.M., 2005. Bank lending to small businesses in Latin America: does bank origin matter? J. Money Credit Bank. 37 (1), 83-118.
Delfiner Miguel and Peron Silvana, 2007, Commercial Banks and Microfinance. Central Bank of Argentina, MPRA, June.
Demsetz H., 1982, Barriers to Entry, American Economic Review, Vol. 72, n. 1, March, pp. 47-57.
Diakhaté, N.A.K., Wane, R., Diop, A.A., Mbaye, B.B., (2014). Financing the economy in Senegal, DPEE, P.33.
Directorate of Regulation and Supervision of Decentralized Financial Systems (DRS-Sfd).
Eber, N., "Long-term banking relationships. A review of the literature ", Journal of Political Economy 2001/2 (Vol.111), p. 195-246. DOI 10.3917 / redp.112.0195.
Eber, N., Customer Selection and Bank Exclusion. In: Financial Economics Review, No. 58, 2000. Bank Exclusion. pp. 79-96. doi: 10.3406 / ecofi.2000.3482.
Eber, N., Customer Relations and Competition in the Banking Markets. In: Financial Economics Review, No. 27, 1993. The Banking Industry. pp. 399-414. doi: 10.3406 / ecofi.1993.2445.http: //
National Survey of Small and Medium Enterprises (ENPME, 2013).
Fall, F. S. and Diagne A., 2009, The link banks and microfinance institutions: a response to the financing needs of SMEs in the face of the challenges of globalization, Proceedings of the symposium of the 11th scientific days of the AUF, AIREPME.
Fall, F. S., "Bank / microfinance complementarity in developing economies: a theoretical perspective", Journal of Industrial Economics [Online], 133 | 1st quarter 2011, document 2, posted on March 15, 2013, accessed on January 09, 2015.
Fall, F. S., (2010), Complementarity Bank / Microfinance: An Inclusive Finance Perspective, doctoral thesis defended at the University of Rouen in July.
Fall, F. S., 2009, Overview of the Relationship Banks / Microfinance Institutions Around the World, Third World Review, n.199, July - September. p. 485-500. DOI 10.3917 / rtm.199.0485.
Founanou, M., Ratsimalahelo, Z., "Financing Small and Medium-Sized Enterprises in Sub-Saharan Africa. Should we restore public development banks? "The Journal of Management Science 2011/3 (n ° 249-250), p. 105-112.DOI 10.3917 / rsg.249.0105.
Galor O. and J. Zeira, 1993, "Income Distribution and Macroeconomics," Review of Economic Studies, 60 (1): 35-52.
Hamza H., Guermazi-Bouassida S., "Islamic banking financing: an ethical solution to the financial crisis", The Journal of Management Science 2012/3 (No. 255-256), p. 161-166.
Huet, J.M., et al., "Islamic Finance, a Source of Growth," The Expansion Management Review 2014/4 (No. 155), p. 30-39. DOI 10.3917 / emr.155.0030
Jenkins H., (2000) "Commercial Banking Behavior in Micro and Small Enterprise Finance", HIID Development Discussion Paper, 71.
Jégourel Y., "Microfinance: Between Social Performance and Financial Performance", Crossing Perspectives on the Economy 2008/1 (No. 3), p. 197-205. DOI 10.3917 / rce.003.0197
Joel de Rosnay, 1975 - The Macroscope. Towards a global vision, Seuil, (Prize of the Academy of Moral and Political Sciences).
Jouaber K., and Mehri M .: A Theory of Sharing Ratio under Adverse Selection: The Case of Islamic Venture Capital. Presented at the workshop: International Sustainable Finance Paris-Dauphine University (September 2011).
Khalil, A-F, Rickwood, C and Murinde, V: Evidence on agency-contractual problems in mudarabah financing operations by Islamic banks. In Islamic Banking and Finance New perspectives on profit-sharing and risk (2002).
Khan, T. (1995). "Demand for and supply of mark-up and funds in Islamic banking: some alternative explanations", Islamic Economic Studies 3 (1), pp. 39-78.
Kauffmann, C., "SME Financing in Africa, OECD Development Center", Benchmarks No. 7, 2005.
Lefilleur, J., "How to improve access to finance for SMEs in sub-Saharan Africa? "Contemporary Africa 2008/3 (No. 227), p. 153-174. DOI 10.3917 / afco.227.0153
Lelart M., "The Father of Microcredit Honored by the Nobel Peace Prize ...", Journal of Political Economy 2007/2 (Vol 117), p. 197-208. DOI 10.3917 / redp.172.0197
Lelart M., 2005, From informal finance to microfinance, AUF and editions of contemporary archives, Paris.
Lopez C. and Rhyne E., 2003, "The Service Company Model: A New Strategy for Microfinance Commercial Banks", Accion Insight Paper No. 6, September.
Mayoukou C. (1999), "Financial Cooperation and Temporal Coordination of Interaction: Application to Emerging Forms of NGO Cooperation, Microfinance and Banks in Sub-Saharan Africa", in Nguyen Van, C., Ponson B., Hirch G. eds); Corporate and Global Partnerships, Karthala (Collection Universités francophones), Paris, p. 173-189.
Mayoukou, C., 1996, "Financing the creation of SMEs-SMI in Congo", in ALBAGLI and HENAULT (editors), The creation of companies in Africa, EDICEFAUPEL, p. 93-101.
Mehdi Mili et al., "Competitiveness and Profitability of Islamic Banks", Management 2000 2014/4 (Volume 31), p. 91-109. DOI 10.3917 / g2000.314.0091
Nienhaus V., (2011), "Comparisons between the United Kingdom and Continental Europe", Bank Review, Arab-Europe Supplement, June, p. 21-23.
Nsabimana, A., "Articulation Banks-Microfinance in Africa: Impact on the Governance and Performance of the IMF", Reflections and Prospects of Economic Life 2009/3 (Volume XLVIII), p. 29-38. DOI 10.3917 / rpve.483.0029.
Nsabimana, A., "Articulation between banking and microfinance activities: a new sphere of intermediation? "Worlds in Development 2004/2 (No 126), p. 37-50.
Peillex J, L Ureche-Rangau, "Creation of an Islamic stock market index on the Paris financial market: methodology and performance", Journal of Financial Economics 2012/3 (N ° 107), p. 289-314. DOI 10.3917 / ecofi.107.0289.
Porteous D., 2006, "Interest Rates for Competition and Microcredit", CGAP Focus Note, No. 33, February.
Prescott E. S., 1997, "Group and Financial Intermediation Loans: An Example", Richmond Bank Federal Reserve Economic Review, Vol. 83.
General Census of Enterprises (RGE, 2016).
Richardson G. B., 1972, The Organization of Industry, The Economic Journal, September.
Rutherford S., (2002), How poor people manage their money, Karthala, Paris.
Roux M., "Ethical Finance, Islamic Finance: What Convergences and Potentialities of Development in French Retail Banking? ", The Journal of Management Science 2012/3 (n ° 255-256), p. 103-109. DOI 10.3917 / rsg.255.0103
Sanders Th., Wegener C., 2006, Meso-finance: filling the financial service gap for small businesses in developing countries, NCDO,
Segrado C., 2005, "The Involvement of Commercial Banks in Microfinance: The Egyptian Experience", Tempus, University of Torino.
Serhal C. J., "Islamic finance: a possible integration into the French banking system", Revue Bank Edition, No. 109, 2007.
Sevestre. (2002). "Econometrics of panel data". Paris: Dunod.
Sandrine K., (2012), "Efficiency of microfinance institutions in WAEMU: an outreach-financial intermediation approach"
Shaban, M., Duygun, M., Anwar, M., Akbar, B., 2014. Diversification and Banks' Discretion in Islamic Banking. J. Econ. Behav. Organ. 103, S39-S55.
Shaban, M., Duygun, M., Fry, J., 2016, SME's lending and Islamic finance. Is it a "win-win" situation?
Stigler G., 1968, The Organization of Industry, Chicago, IL: University of Chicago Press.
Tioumagneng T. A, "Banking credit and the behavior of SMEs investing in intangible assets", Market and organizations 2011/2 (N ° 14), p. 195-213. DOI 10.3917 / maorg.014.0195
Tioumagneng, A., "Banks and Debt Behavior of Companies", Research in Management Science 2012/2 (No. 89), p. 81-99. DOI 10.3917 / resg.089.0081.
Wamba, H. "Social capital and access of African SMEs to bank credit: the case of Cameroon", The Journal of Management Science 2013/1 (N ° 259-260), p. 53-68. DOI 10.3917 / rsg.259.0053.
Wamba H. and Tchamambe D.L., 2002, Financial Information and Bank Credit Offer Policy for SMEs: Case of Cameroon, International SME Review, vol.15, no. 87-115.
Westley G.D., 2006, "Strategies and Structures for Commercial Banks in Microfinance," Department Best Practice Series, Washington, DC, Inter-American Development Bank, August.
Young R., Drake D., 2005, Banking at the Base of the Pyramid: A Microfinance Primer for Commercial Banks, United States Agency for International Development (USAID).