جستجوی مقالات مرتبط با کلیدواژه « usury-free banking » در نشریات گروه « علوم انسانی »

Even though about forty years have passed since the approval of the usury-free banking operation law, many still doubt the success of the banking system in relation to the elimination of usury. Therefore, in addition to improving the efficiency of the banking system, some researchers have been looking for a review of the usury-free banking law for many years and have introduced the elimination of usury as one of their goals. It seems that they believe that the inefficiency of the banking system and the existence of usury in banking operations without usury is due to the shortcomings of the current law, and by changing and amending the law, both problems will be solved. Using an analytical-descriptive method in this research, the second problem, that is, the existence of the suspicion of usury, has been investigated. The results show that several factors such as the shortcomings of the law of interest-free banking operations, the existence of problems in the content of executive statutes and circulars, problems related to the content of contracts, the unfavorable performance of bank managers and employees and customers, the complexity of combined contracts (used in usury-free banking) compared to usury loans, the inherent limitations of the bank institution as a basis for the realization of usury-free banking, each of them have been the basis of public mistrust. But what has been most effective is the fourth factor, which is the weak performance of the bank's operators and customers, which is due to the lack of necessary knowledge about the provisions of the contracts and also the lack of sufficient motivation towards its accurate implementation. It is suggested that the issue of training customers and bank operators and planning to promote the culture of compliance with the law and Sharia in banking contracts should be included in the text of the law and the central bank or another institution should be in charge of the training process in the country.

One of the fundamental principles in the financial system for economic development and poverty reduction is financial inclusion, which is in line with the principles of justice and equality in the Islamic financial system. Financial inclusion refers to the accessibility, availability, and usage of the formal financial system by all members of an economy. Therefore, financial inclusion is a multi-dimensional phenomenon that requires effective supervision. Effective supervision not only strengthens the stability of banks but also ensures economic growth and builds trust in the financial system. One way to build trust is through the enactment and enforcement of laws that protect the interests of all stakeholders in a comprehensive economy.Therefore, the aim of this research was to present a model for analyzing the impact of central bank regulatory laws and financial technology on financial inclusion in the interest-free banking system in Iran. This study used a new approach to estimate the financial inclusion index. The research findings indicated that the regulatory laws of the central bank and financial technology are effective in developing financial inclusion. Furthermore, the research findings suggest that the development of financial technology, especially in the banking industry in recent years, has led to the expansion of financial inclusion in Iran, creating fair and equal access to financial products and services for individuals in society, which is the main goal of financial inclusion, and with the expansion of financial inclusion, financial deprivation in society has decreased.

Over the past 100 years, three approaches have been presented in the literature about the nature of the bank, including "financial intermediation", "Deposit Multiplier", and "money creation" theory of banking. In the present article, using analytical-descriptive method, these three perspectives are analyzed and the compatible approach with the reality of modern banks is introduced. Besides, the precise investigation of the laws and regulations regarding usury (interest) free banking in Iran, especially the definitions, the contracts between depositors and the bank, and the mechanisms designed for dividing bank income from Joint/Non-joint activities, shows that these regulations are designed based on "financial intermediation approach".In order to increase the consistency between these laws and regulations and the nature of modern banks, recommendations are made, including definitions for banking operations and deposits; amending contracts related to depositing (Wakalah and Qard-al-hasan); and modifying the method for identifying and sharing bank revenues between the bank and depositors. Nevertheless, regarding the relationships between banks and the central bank, and also among banks in the interbank market, serious problems can arise, which make the compatibility between the modern bank's nature and the regulations for usury free banking almost impossible, through the use of Wakalah theory. Accordingly, continuing attempts to eliminate usury form banking system, based on the financial intermediation approach (the current ruling approach), will not be fruitful. Although as a short-term strategy, the above suggestions can be useful, but a fundamental and long-term approach to eliminate usury from the financial system necessitates different arrangements and institutions from modern banks.

Determining the optimal bank interest rate in the country's economy is an important issue upon which the country's thinkers have not yet reached a general consensus due to the multiplicity of economic, political, monetary and financial variables. Thinkers and researchers of Islamic economics, considering the differences in legal and economic aspects as well as the observance of religious aspects of the method of determining the optimal interest rate from the perspective of Islamic economics with conventional economics, have announced diverse theories. These patterns and theories, while revealing the significance and sensitivity of determining interest rates in the Usury-free banking system, also indicate that a coherent framework and a comprehensive theory for determining interest rates in the Islamic society of Iran has not been established. Moreover, no specific operational pattern is observed for determining interest rates in the theories. The present study attempts to clarify the fiqhi, legal, and economic criteria and indices of determining the optimal interest rate, and then taking advantage of such criteria, it investigates and assesses the opinions and finally introduces an alternative solution. The results indicate that, firstly, the strategies and theories expressed are generally not comprehensive, nor are they complete, and they do not have maximum compatibility with Islamic criteria. Secondly, the regular interest rate, inspired by the Taylor rule, can be a very suitable method for determining the interest rate in the Iranian economy, in which all the jurisprudential, legal and religious criteria have been observed and enjoys more comprehensiveness than the other methods

Despite the fact that some religious leaders and people consider the Iranian banking system as usury and the negative effects of the creation of bank money, some still insist that the current banking in Iran is not only interest-free but also Islamic.  And creating bank credit money is the inalienable right of the bank. To refute this idea, we first explain the main nature of Western banking and show the two main features of Western banking. The first feature is the types of debt contracts with fixed interest rates and guaranteed principal (usury loan) and the second feature is the creation of credit money. The Monetary and Banking Law of 1362 and the recent proposed amendments have only paid attention to the nature of usury in banks and have done so in the form of denigrating banking by introducing legitimate contracts and diversifying them to provide depositor and applicant facilities in the field of equipping and allocating resources. In these reforms, the creation of bankschr('39') credit money has been neglected or this creation of money has been assumed as their inalienable right. While the feature that makes a bank a bank is the creation of credit money, not that usurious loan. In addition to the issue of credit money creation, the question arises as to how true the current banking and recent reforms, which are claimed to be not only amorphous but also Islamic, are. The present study is fundamental and with the method of content analysis and descriptive and library study showed that due to the presence of usury and usury in various ways in the current banking of Iran, the law of interest-free banking in 1362 and the recent proposed amendments in the first step towards Islamic banking. People are obviously committing usury. Despite all the efforts made, we have not yet been able to complete the second necessary step, which is to demoralize the banking system, and we have a long way to go before entering the third step, namely Islamic banking. Islamic banking has characteristics that any legislative and institutional arrangement must achieve and provide those characteristics.

Project financing is one of the most important and practical instruments in developed and developing countries and many medium and large scale projects in the world are implemented by using this approach. Unfortunately, this approach has not really been able to Be implemented in Iran our country, and one of the main reasons for this failure is the lack of knowledge and explanation of the requirements and dimensions of this method. Due to the bank-based nature of the Iranian economy, it seemed that the best place to start and practice this method of financing is for banks to take steps in this field and allocate a small part of their resources to this method. For this purpose, in order to better understand the issue, the main factors affecting the realization of the project financing model in the banking system of the Islamic Republic of Iran with a relatively comprehensive review of domestic and foreign scientific resources are counted and then based on experts' opinions using TOPSIS method in fuzzy environment were prioritized. According to the research findings, political and economic stability, legal issues, regulation of strong contractual relations, accurate feasibility studies and strong financial structure have the greatest impact and degree of importance in realizing the project financing model in the banking system of the Islamic Republic of Iran. And other factors are in the next ranks. This research is the first step in order to explain this practical method of financing as much as possible, and in the next research, it is necessary to take additional and more detailed steps.

After the Islamic revolution, one of the most important actions that was implemented in the country was removing usury from the banking system according to Sadr theory. This theory was the base of writing usury-free banking law in 1982. But, after passing about four decades of Islamic revolution, the performance of banking system was criticized by economic experts. In this paper with review-analysis method, we survey on Usury-free banking law and then with qualitative content analysis method and using semi-structured interview,118 meaning units, 25 concepts, and 8 categories named structure criticism about performance of usury-free banking were extracted. Ultimately, some suggestions to improve the performance of usury-free banking system have been offered.

Good implementation of corporate governance principles is considered an important tool for the stability and soundness of a financial institution. An extensive body of studies has done about the effects of corporate governance on firm performance. The majority of those studies have found a more corporate value for implementing those principles. Due to these facts, the assessment of compliance with corporate governance principles is a critical factor for external inspectors to be sure about the long-term sustainability of any economic organization. Based on these facts, this research aims to introduce a suitable mechanism for measurement of Iranian banking corporate governance, and calculation of corporate governance in a bank as a sample through a set of value measures, elements, and indices. This mechanism helps to score banks compliance with four corporate governance principles: accountability, responsibility, transparency, and fairness and rank them according to their score. For valuation of importance coefficients for each of the measures and elements, we use the viewpoints of the experts. To calculate the final corporate governance index for the sample bank, the value of any sub-indices is derived from published information and other information related to the bank.

Thirty years after establishing the Islamic Republic of Iran’s usury – free banking system, there are many ambiguities about its success. After investigating sharia-related issues of usury-free banking system based on nominate contracts, it was observed that: banking structures and mechanisms do not have the capabilities to execute the contracts; actions taken by the designers, policy makers and executives of this system to confront the mentioned challenges may be categorized into two groups: First, the continuation of the banking system based on nominate contracts and correction  of the current situation; second, moving towards a different paradigm. This article concentrates on the second solution and explains a new paradigm named “bank contract”. Also, the currency used in the early years of Islam was the real money whereas the world’s present banking system is using fiat money which has its own regulations, hence the necessity of providing new definition of the state money and analyzing the existing banking and market systems based on that.  Finally, as banking and its functions in their modern sense didn’t exist in the early years of Islam and have to be recognized as a novel issue, the relationship between depositors and the bank and the relationship between the latter and receivers of facilities need a contract definition that goes with “bank contract”. Based on this study, usury-free banking system based on nominate contracts that now act as the underlying trend in the usury-free operational law, is not suitable for executing banking operations.

Numerous studies have been conducted about Iranian banking system and various dimensions of this phenomenon have been investigated; yet these studies have not concentrated on the rationale behind the policies and actions of those involved in the Iranian banking system. This study describes the rationale behind three major actors of Iranian banking system, namely the government, banks (private and public) and customers (retail and corporate). Using a multi-layer analysis, it has been tried to portray the blind spots in the country's banking system. In order to explore the relationships, 25 open interviews have been conducted with experts from different influential groups involved in the system. After a three-layered classification and analysis of these, the dominant atmosphere of the banking interactions and the existing complex problems have been explained. At the end, the areas of policy-making for improving the current situation have been determined. Validation of the results has been done through the focal group.

The banking system is one of the pillars of every country's economy, whose efficiency or inefficiency can directly and indirectly affect the performance of its economy. The challenges posed by the usury free banking system are the asymmetric information issue between the bank and the facility applicant in partnership agreements. The existence of asymmetric information leads to the adverse selection and moral hazard in the markets. Since the 1970s, asymmetry of information has become one of the key issues in the economy.
The present research is to answer the question; the factors affecting the formation of moral hazard and adverse selection in partnership contracts used in Specialized banks in usury free banking, using a combination of AHP and TOPSIS math’s and using field data (questionnaire) to examine These hypotheses suggest that several factors such as the lack of attention to the customer credit risk score and the lack of incentive and punishment mechanisms for customers is effective on the formation of moral hazard and adverse selection. The results of the research indicate that the abovementioned factors have a greater effect on moral hazard and adverse selection. Supervision and control have the most important effect and widespread use of civic participation contracts has the least importance in moral hazard and adverse selection.

Considering the fact that in the modern practice of central banking the open market operation is conducted by making use of the government bonds, it is not possible to use it in the Islamic context. Based on this, recently some researchers in Iran and some other countries have tried to come up with new Islamic instruments for open market operation. This paper tries to evaluate the Fiqhi-economic challenges of these suggested instruments. In this paper, these instruments are evaluated in two different groups. The first group is those instruments that are just theoretical curiosity and not applied in any Islamic county. The second group is those that are applied in some countries. The results of the paper show that most of the suggested instruments cannot satisfy either the economic or Fiqhi criteria. In addition, the practice of some Islamic countries in designating and making use of Islamic instruments for open market operation can be criticized. Based on the results, it becomes clear that the issue of coming up with new Islamic instruments for monetary policy is one of the new topics in Islamic banking and needs to be evaluated in future research

This paper tries to evaluate the issue of monetary policy making in the interbank return rate corridor and the possibility of using this model in the context of Islamic banking in Iran. The results, which are extracted based on an analytical-descriptive approach, show that the conventional instrument of standing facilities are not Sharia-compliant and cannot be used in an Islamic context. However, it is quite possible to use the potentials of Islamic jurisprudence (Fiqh) to come up with Islamic alternatives for conventional instruments. In this paper, six Islamic instruments are suggested for designing the interbank return rate corridor in the Iranian banking system. It seems that the usage of these instruments can help the Iranian central bank to design the interbank return rate corridor and to strengthen the interbank market. This paper tries to evaluate the issue of monetary policy making in the interbank return rate corridor and the possibility of using this model in the context of Islamic banking in Iran.

After the financial crises of 2007 – 2012 banking and financial policy – makers applied some reforms in the financial markets. One can label these items rationalizing financial market. Regarding high attention of Islam to rationality principles one can rationalize the usury – free banking model as well. The Precondition to compile such model is the realness of software and hardware Platforms including transparency of financial information and the possibility of controlling financial transactions. So one objective of this paper is to analyze the challenges of Iran banking system to substitute it with financial rationalism. One finding of this research shows that in order to have any progress in standardizing usury free banking, we can go ahead in direction with moderate rationality. In so doing Iranian banking system would benefit from rational banking at one hand. It would be compatible with Shariah at the other.

Ethical risk in economics and banking refers to any economic operation in which ethical criteria have been ignored. In order to render our research manageable, we only deal with two ethical concerns that are found to be most basic and prevalent, namely “moral hazard” and “adverse selection”, as they relate to operations of the usury-free banking system in Iran.
The best way to measure ethical risk is to review outcomes of existing procedures. For example we know that ethical risks in banking are reflected in overdue claims of banks. In the present study we thus evaluate the extent of non-performing loans as a measure of ethical risk.
In banking operations, we normally associate adverse selection with misallocation of bank resources, and moral hazard is defined as the borrower not abiding by his contract with the bank regarding how he uses the loan. The latter typically leads to non-performing loans.
Our study discovers the highest degree of ethical risks amongst private banks and the lowest level of ethical risks amongst specialized public sector banks. Among the different facilities provided, interest free loans are found to have the least ethical risk.

Syndicated loans are defined as drawing up an agreement between two or several lending institutions to jointly provide loans to applicants. Syndicated loans arrangement for corporate finance could be made operational within the framework of Islamic Financial System and the Law on Usury Free Banking. In light of availabity of more information and higher intensive oversight Viz-a-Viz extension of syndicated loans on activities of the credit recipients, the problem of asymmetry of information could be less pronounced. Thus, the risk of adverse selection and moral hazard which are common in banking practices are better managed, and consequently by creating more incentives for banks and credit institutions to use PLS mode of finance through applying operational frameworks which are more consistent with Islamic finance, they may create better opportunities to achieve higher returns on their investment targets.

The Law for Usury Free Banking «was enacted in Iran in 1983 and has been effective ever since. Notwithstanding، the accounting standard setters have not designed appropriate and sound accounting system، standards and procedures to give effect to its mandate and to assess the level of accountability called for by the Law. Some experts believe that the accounting policies and procedures set by the Auditing Organization of Iran meet the requirements of the Law in as much they relate to» fixed rate «contracts; but the prevailing policies and procedure fall short of complying with the mandate of the Law and accounting for» Mosharekah Contracts «which have no predetermined and fixed element of profit، and thus application of current accounting systems and standards pose serious questions and doubt on the accuracy and appropriateness of income recognized by banks and its appropriation to different stakeholders. The accounting standard setting organization and other professional bodies have not addressed these shortcomings and accordingly the author has felt the need to conduct this research with a view to overcome، to the extent possible، such deficiencies، by gathering and analyzing the views of 96 accounting and other experts as well as by applying the» Delphi Method «. In addition and for the purpose of this research، the author has considered the relevant aspects of» Fund Theory «and» Fund Accounting «in line with the» Accountability Based Conceptual Framework«. It is hoped that the outcome of this research has identified and addressed certain key issues pertaining to financial reporting by banks in compliance with the requirements of the Law to lay grounds for design and application of an appropriate accounting and reporting model to recognize the income and measure the resources of banks with accordance to Usury Free Banking Law.