An Analysis of the Causes of the Failure of the Banking System of the Islamic Republic of Iran in Gaining Public Trust Regarding the Elimination of Usury

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.