ASSESSMENT OF PROFIT RATE OF BANKS IN INFLATIONARY CONDITIONS (WITH EMPHASIS ON ISLAMIC JURISPRUDENCE)

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

ALE BOUYEH ALI; ALAMOLHODA SEYYED SAJJAD

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: RAHBORD Year:2013 | Volume:21 | Issue:65 Page(s): 165-190

Download Full-Text

Persian Verion

View:

5,874

Download:

Cites:

Information Journal Paper

Title

ASSESSMENT OF PROFIT RATE OF BANKS IN INFLATIONARY CONDITIONS (WITH EMPHASIS ON ISLAMIC JURISPRUDENCE)

Author(s)

ALE BOUYEH ALI | ALAMOLHODA SEYYED SAJJAD | Issue Writer Certificate

Keywords

USURY-FREE BANKING SYSTEMQ2

PROFIT RATEQ2

PROFIT RATE OF FACILITIESQ2

PROFIT RATE OF BANK DEPOSITSQ2

INFLATION RATEQ1

ISLAMIC BANKINGQ2

ISLAMIC CONTRACTSQ2

Abstract

Determining the optimal rate of profit on bank facilities and deposits is one of the important issues facing the country right now. In traditional financial system, short-term PROFIT RATE determined by the government (which is proportionate to INFLATION RATE) replaces the PROFIT RATE for investment without risk. Meanwhile, in the USURY-FREE BANKING SYSTEM no interest is paid on deposits and only a PROFIT RATE is considered for the investments. Studies show that INFLATION RATE exerts the highest influence on the PROFIT RATE of bank facilities and deposits. Also, the real PROFIT RATE on facilities granted by banks is very low for people requesting loans and this issue will lead to various economic rents. Therefore, the real PROFIT RATE is taken as the basis of discussions on the ISLAMIC BANKING. This paper reviews reciprocal effects of the PROFIT RATE of bank facilities and deposits on the INFLATION RATE in the Iranian economy, while showing that in the studied period (1993-2006) the PROFIT RATE of bank facilities has been lower than the real rate of investment return. This deficiency has destructive effects on the ability of banks to absorb liquidity and will lead to cash flow into unofficial markets. From the viewpoint of the Islamic jurisprudence, considering INFLATION RATE when determining PROFIT RATE will not amount to usury and will only protect the real value of money in the society.

Cites

No record.

References

پول در اقتصاد اسلامی

Cite

APA: Copy

ALE BOUYEH, ALI, & ALAMOLHODA, SEYYED SAJJAD. (2013). ASSESSMENT OF PROFIT RATE OF BANKS IN INFLATIONARY CONDITIONS (WITH EMPHASIS ON ISLAMIC JURISPRUDENCE). RAHBORD, 21(65), 165-190. SID. https://sid.ir/paper/89233/en

Vancouver: Copy

ALE BOUYEH ALI, ALAMOLHODA SEYYED SAJJAD. ASSESSMENT OF PROFIT RATE OF BANKS IN INFLATIONARY CONDITIONS (WITH EMPHASIS ON ISLAMIC JURISPRUDENCE). RAHBORD[Internet]. 2013;21(65):165-190. Available from: https://sid.ir/paper/89233/en

IEEE: Copy

ALI ALE BOUYEH, and SEYYED SAJJAD ALAMOLHODA, “ASSESSMENT OF PROFIT RATE OF BANKS IN INFLATIONARY CONDITIONS (WITH EMPHASIS ON ISLAMIC JURISPRUDENCE),” RAHBORD, vol. 21, no. 65, pp. 165–190, 2013, [Online]. Available: https://sid.ir/paper/89233/en

Related Journal Papers