ABSTRACT
This study offers a critical survey of Islamic Microfinance Institutions (MFIs) over the past 15 years. It critically reviews studies on the financial sustainability of MFIs, by paying close attention to their challenges and how they can manage to overcome these barriers. It is believed that human resources development, microfinance techniques, linkage programs, cost management, competitiveness, regulation and supervision, the funding structure, and management information systems of MFIs are critical factors that determine their financial sustainability. The most significant impact to help MFIs overcome those barriers seem to come from linkage programs, the introduction of regulations, new technologies, and innovations in financial services and payment systems.
