Abstract. The paper studies the deficiency of the neo liberal policy agenda that aims totransform non-governmental organization (NGOs) engaged in poverty alleviationinto formal financial institutions seeking access to capital market and performingon a commercial basis. It propounds that poverty focused credit programs aimedat distributive equity are logically inconsistent with an ethically neutral liberal marketorder. In comparison, it is inferred in the paper that Islamic economic principles affirm the logical consistency and adequacy to reality of Islamicfinancial program and poverty focused credit programs. These programs, as indicated by the welfare banking ofIslamic Banks in Bangladesh, seek access to financialmarkets, which are characterized by the presence of Shariah instrument prohibiting interest and profiteering and promoting charity.Keywords. Micro finance, Micro business, Economic development.JEL. G21, N80, Q12
