Authors : Hasan Armat and Ahmad Ranjbar
Abstract: In Islamic banking, no interest is taken since in interest the acquisition of money is through money not doing business and that is why it is also referred to as exploitation. Defending Islamic banking which is not only due to claims and religious feelings has various economic reasons in which the financial system based on participation in profit and loss leads to better accumulation of savings and use of banking financial sources in the best applications and thus leads to just distribution of income and fortification of the participation spirit among money owners and savers. While otherwise, there would be a negativist spirit. The success of Islamic banks in doing their role is somehow depended on their healthy cores of managers and their activities and their success in helping growth is due to the three following conditions: changing and improvement of methods and tools of financial providing for clearing any doubts about their Islamic nature, increase of effectiveness in absorbing financial sources and their use, increase of their role and share in the trend of social and economic growth. In this study, we examine the various Islamic banking contracts and their features and challenges.
Hasan Armat and Ahmad Ranjbar, 2015. Examination of Islamic Banking and its Challenges in Iran. The Social Sciences, 10: 2051-2055.