The effect of Micro Waqf Bank on the financial inclusion of micro and small enterprises in the pesantren areas

While the role of other financial institutions in the development of MSEs (Micro and Small Enterprises) is well documented, the relationship of Micro Waqf Bank and the MSEs is less explored. This initial study aims to discuss the presence of MWB and its influence on the financial inclusion of MSEs and the roles of pesantren in improving access of the MSEs in the Pesantren areas to MWBs financial services. This research uses a descriptive qualitative method of literature study. Data were collected from extant literature, including journals, books, documentation, the internet, and the library, to produce conclusions under the topics discussed. The study results indicate that MWB increases financial inclusion, especially for low-income communities and MSEs actors in the pesantren areas. The presence of MWB strengthens capital and empowers the community through MSEs. Financing provided by MWB increases the financial inclusion of MSEs through business development and profits sharing. As the target for establishing MWBs, Pesantrens, play an essential role in SMEs' financial inclusions, particularly in rural areas.