Open AccessGENERAL REGULATORY FRAMEWORK IN RASTIN PROFIT AND LOSS SHARING BANKING:
Author(s) -
Bijan Bidabad
Publication year - 2019
Publication title -
journal of business and finance in emerging markets
Language(s) - English
Resource type - Journals
eISSN - 2580-5576
pISSN - 2580-5568
DOI - 10.32770/jbfem.vol251-66
Subject(s) - islamic banking , business , retail banking , order (exchange) , general partnership , economic shortage , profit sharing , finance , profit (economics) , investment banking , industrial organization , economics , islam , microeconomics , philosophy , linguistics , theology , government (linguistics)
This paper aims to explain some auxiliary regulatory pillars and complementary considerations and systems in Rastin Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the auxiliary preparations of this banking system. Rastin Banking complies with the nature of financial intermediary activity (partnership of depositor in the yields of the fund receiver via the bank). In order to fulfil this goal despite particular formation, financial structure, instruments and workflow many other auxiliary considerations are defined to remove banking shortages in a legal framework. To handle Rastin Banking and to remove the common banking obstacles, a set of particular theoretical and operational regulatory frameworks should be defined to fulfil the participation operations. In this paper, we will have a look at the auxiliary legal environment to setup Rastin Banking. This system requires more elaborations for further practical development and adjustment. In this system, the investment return of the participation is distributed to the parties of financial partnership (depositor, entrepreneur and bank), and it is done by eliminating fixed interest rate.