Monetary and Banking Research Institute
Date:2/20/2019 3:11:01 PM   |   Code : 294226   |   View: 690

Designing 6 New Islamic Instruments in the Form of Qarz Al-Hassaneh Contract to Apply in Qarz Al-Hassaneh Mehr Iran Bank (Qarz Al-Hassaneh Mehr Iran Bank, 2017-2018)


Executive Summary:

An assessment of the Iran’s banking system over the past three decades has shown that although a lot of positive efforts have been made for the implementation of Islamic banking, there are still challenges for the Islamic performance of banks and credit institutions. Perhaps because of the same challenges, the elites, the clerics (and jurists) and even the public are skeptical about the functioning of the Islamic banking system. In fact, it can be argued that the current state of implementation of the usury-free banking system in the country is far from the ideal model of Islamic banking, which has been widely emphasized in the theoretical literature of Islamic economics and finance.

The main question to ask is: what are the plans that banks and credit institutes need to have in order to fully operate in the framework of Islamic standards?

In this regard, via successful patterns and failed experiences in other Islamic countries, Qarz Al-Hassaneh Mehr Iran Bank is chosen as one of the most successful banks in the country and, through specific and timely reforms, it is attempted to make the standard model of Islamic banking in the country.

The main questions of the research are:

 

1.     What are the new banking instruments in the framework of Qarz Al-Hassaneh contract that can be used in the business model of Qarz Al-Hassaneh Mehr Iran Bank?

2.     How can proposed instruments respond to the needs of customers in Qarz Al-Hassaneh Mehr Iran Bank using the capacity of Islamic jurisprudence?

 

This plan includes six phases:

 

1.     Evaluating the Jurisprudential-Economic feasibility of designing Qarz Al-Hassaneh Sukuk by Qarz Al-Hassaneh Mehr Iran Bank for the philanthropic financing

2.     Evaluating the Jurisprudential-Economic feasibility of designing Waqf Sukuk by Qarz Al-Hassaneh Mehr Iran Bank for the philanthropic financing

3.     Evaluating the Jurisprudential-Economic feasibility study of designing preferential Qarz Al-Hassaneh deposits (offering facility privileges to depositors)

4.     Evaluating the Jurisprudential-Economic feasibility of designing Qarz Al-Hassaneh facilities on the basis of the collateral of valuable goods (gold, carpet, etc.) using other Islamic countries experiences

5.     Evaluating the Jurisprudential-Economic feasibility of designing credit card based on Qarz Al-Hassaneh contract

6.     Evaluating the Jurisprudential-Economic feasibility of designing LC (letter of credit) based on Qarz Al-Hassaneh contract.

The output of this project is presented in the form of instruments to be used in Qarz Al-Hassaneh Mehr Iran Bank in the framework of Qarz Al-Hassaneh contract.

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