Umar Habibu Umar
Auwalu Isah Darma


This study assesses the MSME financing practices of Islamic banks in Bangladesh during the COVID-19 pandemic. The study examines the annual reports of Bangladeshi Islamic banks between 2020 and 2021. This study found Islamic bank financing for cottage, small and medium enterprises (CMSME) through agent banking was effective during the pandemic. Banks also launched various programs, products, and schemes easily accessible to CMSMEs in the country, including special programs supporting women entrepreneurship and CMSMEs in rural areas. Overall, the performance of MSME financing of Islamic banks in the country was impressive and effective measured by the amounts disbursed to CMSMEs, the number of beneficiaries, new branches opened, and employment of bank staff to handle the enterprises’ financial requests over the period. The findings can help the government and regulatory agencies, particularly Bangladesh Bank, during the revision of regulations to enhance CMSME financing by scheduled banks in the country.

Keywords: micro small and medium enterprises (MSMEs), MSME financing, Covid-19, islamic banks, documentary method, Bangladesh


Author Biographies

Umar Habibu Umar, Department of Accounting and Finance, School of Business and Economics, Universiti Brunei Darussalam, Brunei Darussalam.

Umar Habibu Umar is among the pioneer academic staff of Yusuf Maitama Sule (Formerly Northwest) University, Kano, Nigeria established in 2012. He was a former Head of the Department of Accounting of the university and is currently a Ph.D. student in Finance, Universiti Brunei Darussalam. Umar is also a member of the Institute of Chartered Accountants of Nigeria. He develops a special interest in research that links accounting to Islamic inheritance. Umar Habibu Umar is the corresponding author and can be contacted at: uhumar21@gmail.com




Auwalu Isah Darma , Department of Management Sciences, Kano State College of Education and Preliminary Studies, Kano State, Nigeria






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