Nowadays, CREDIT derivatives are known as ingenious financial devices to manage CREDIT risk. They are useful in controlling CREDIT risk of institutions and financial intermediaries' esp. CREDIT unions. Though, the motives for speculation and investment are also effective in increasing the exchange of such derivatives. Among them, CREDIT DEFAULT SWAP are mostly exchanged derivatives those which take on an outstanding importance in managing CREDIT risk among CREDIT DEFAULT SWAP banks. This research paper study the possibility of using CREDIT DEFAULT SWAP to manage the CREDIT risk in Islamic banking, and profound Islamic jurisprudence based reasons to study the way this device agrees with Islamic principles of jurisprudence (Figh).

Given the importance of CREDIT risk in the banking system, banks have always paid special attention to CREDIT risk management and have used different tools to manage it. Using CREDIT derivatives, especially "CREDIT DEFAULT SWAP" and "CREDIT- linked note", is one of the most common tools for this purpose. This paper investigates the possibility of applying these tools in the banking system of the Islamic Republic of Iran, and evaluates CREDIT derivatives based on general conditions of contracts from the viewpoint of the jurisprudence of Shi'a. As a result, we can say that CDS is compliant with shariah, but CLN is not due to its having some usury problem.

CREDIT risk as a possibility of a debtor’s DEFAULT in its obligations has led CREDITors to acquire some tools to cover it. CREDIT DEFAULT SWAP as a derivative is one of the most effective risk management tools, because in addition to risk management, it provides an opportunity for the spread of secondary markets and the deepening of the capital market. CREDIT insurance is another type of CREDIT risk management tool that is often confused with DEFAULT SWAPs. Finding some homologies between CREDIT insurance and CREDIT DEFAULT SWAP geos back to our legal and jurisprudential system as well as the Western law. Due to the acceptance of insurance in Islamic jurisprudence, these similarities have been used to justify CREDIT DEFAULT SWAP contract. In this research, an attempt has been made to draw a border between these two institutions. It should be noted that recognizing the nature of CREDIT DEFAULT SWAPs will affect the assessment of the validity of such a contract from a jurisprudential point of view, and this discussion is crucial as it shows the possibility of accepting CREDIT DEFAULT SWAPs in the Iranian capital market.

CREDIT risk as a possibility of a debtor’ s DEFAULT in its obligations has led CREDITors to acquire some tools to cover it. CREDIT DEFAULT SWAP as a derivative is one of the most effective risk management tools, because in addition to risk management, it provides an opportunity for the spread of secondary markets and the deepening of the capital market. CREDIT insurance is another type of CREDIT risk management tool that is often confused with DEFAULT SWAPs. Finding some homologies between CREDIT insurance and CREDIT DEFAULT SWAP geos back to our legal and jurisprudential system as well as the Western law. Due to the acceptance of insurance in Islamic jurisprudence, these similarities have been used to justify CREDIT DEFAULT SWAP contract. In this research, an attempt has been made to draw a border between these two institutions. It should be noted that recognizing the nature of CREDIT DEFAULT SWAPs will affect the assessment of the validity of such a contract from a jurisprudential point of view, and this discussion is crucial as it shows the possibility of accepting CREDIT DEFAULT SWAPs in the Iranian capital market.

DEFAULT risk is one of the most important types of risks, and CREDIT DEFAULT SWAP (CDS) is one of the most effective financial instruments to cover such risks. The lack of these instruments may reduce investment attraction, particularly for international investors, and impose potential losses on the economy of the countries lacking such financial instruments, among them, Iran. After the 2007 financial crisis, the importance of CDS has increasingly augmented because theoretically and practically, this instrument could significantly prevent catastrophes such as the mentioned crisis. The present study seeks to predict the price of CDS contracts with the Merton model as well as the compound neural network models including ANFIS, NNARX, AdaBoost, and SVM regression, and compare the predictive power of these algorithms which are among the most prestigious, intelligent models in finance. The research statistical population includes the A-rated North American and European companies which are known as the reference entities for CREDIT DEFAULT SWAPs. Data were collected from the Bloomberg Terminal for an eight-year period from 2008 to 2015. Contracts of 125 companies were selected as the statistical sample. The results reveal that the average predictive power of the NNARX is higher than that of other algorithms under scrutiny.

Risk is an inseparable part of the banking industry. Due to the specific nature of Islamic contracts, Islamic banking, in addition to the usual banking risks, also faces other risks peculiar to itself. CREDIT risk is among the most common risks in banking and various methods and instruments have been used to gauge and manage it.CREDIT DEFAULT SWAP (CDS) is one of the most important types of CREDIT derivatives which have been extensively used in conventional trade banking for the past decade, with the aim of managing the CREDIT risks. In this article the possibility of using this CREDIT derivative in Islamic banking has been studied with a jurisprudential approach, and it has been shown that benefitting ftom this CREDIT derivative in different ways can be validated.In this study the hypothesis of possibility of conforming the CREDIT DEFAULT SWAP with the Guarantee [Dhaman] and Insurance [Bee may] contracts, has been studied, and in the end in accordance with the standards of Imamia jurisprudence, has been endorsed. Similarly supposing the CREDIT DEFAULT SWAP as a 'newly-created contract' (because of possessing a new legal reality), has also been considered and it has been shown that on account of adhering to the general conditions of valid transactions, its validity as a newly-created contract is also possible.

Issuance of Islamic securities (sukuk) is one of the innovations of recent decades that open bright opportunities on the Islamic financial system. These bonds based on Islamic contracts are designed to substitute for securities, especially bonds are considered usury. The risks of this tool is the most important aspects that should be considered in the design of financial instruments. The first step in risk management, identification of risks and the next step is to reduce or eliminate it, thereby encouraging investors to buy these tools, resulting in a growth market to be provided. In this article dealt with the management of CREDIT risk and cover this risk. So far, the country's financial rules in Iran (rules of the Securities and Exchange Money and CREDIT Council and the Council) have been trying to pay guarantee obligations to cover CREDIT risk for investors. We believe that the guarantor for the bonds, despite the many advantages, but also disadvantages, which is better than other methods should be used to cover this risk. In this paper recommended CREDIT DEFAULT SWAPs as a good way to cover sukuk CREDIT risk.

Sustainable economic growth and development is one of the most significant missions of every country which should be attained through economic regime framework. According to Islamic concepts of justice, security and economic growth are the objectives of the Islamic economic school and are necessary for achieving public prosperity. This research studies the possibility of financing social businesses within the Islamic economic framework in the Iranian capital market. In this study, the conceptual frameworks regarding social businesses in recent decade are surveyed and an operational model is presented for financing social businesses and the infrastructure projects. The findings reveal that there is a possibility for creating a ' social business market' and also for issuance of securities named ' qard al hasanah' which could be used for financing and developing social businesses.