The Contribution of Microfinance on Reinforcing Economic Sustainability and Financial Development System

We try to study the relationship between microcredits and sustainable development in some Islamic economics over the period 1993–2021. We use a multi-step approach based on different statistical tests and econometric models in order to discern the type of correlation that could exist between microfinance and sustainable development. The experimental results show that there is a positive and significant relationship between the indicators of microfinance and sustainable development. By offering the opportunity to access microcredit, microfinance institutions can contribute to reinforcing sustainable development. Therefore, households should be encouraged to create investment opportunities and increase their demand for microcredit. In business settings, the term sustainability is defined along these triple bottom lines, such as social, financial, and environmental, and highlights activities that improve a firm’s social and environmental performance, alongside its financial performance.