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Paper Information

Journal:   JOURNAL OF ISLAMIC ECONOMIC STUDIES   SPRING-SUMMER 2016 , Volume 8 , Number 2 (16) ; Page(s) 105 To 136.
 
Paper: 

EXAMINING THE DETERMINANTS OF NET INCOME IN RIBA-FREE BANKING WITH AN EMPHASIS ON DIFFERENCES BETWEEN REALIZED AND ON ACCOUNT PROFITS (CASE STUDY: IRAN'S RIBA-FREE BANKING SYSTEM)

 
 
Author(s):  GHAEMI ASL MAHDI*, MATIN SHAHAB, BAFANDEH IMANDOUST SADEGH, MOUSAVI BARRODI SAYYED MAHDI
 
* 
 
Abstract: 

According to the Riba-Free Banking Act, banks are authorized to use the entrusted deposits in profitable plans on behalf of the depositors, and at the end of the financial year, to divide the profits among the mselves and the depositors after deducting related fees and charges. The most important feature of Riba-Free Banking is the manipulation and allocation of resources, the introduction of partnership and exchange contracts and removal of interest from the banking system to replace it with on account profit with varying efficiency. In this study, to evaluate the effect of Riba-Free Banking law on the banking system profit making, factors affecting the bank's net profit for the period 1386-1392 (A.H.S) are examined. The results show that with an increase on only one percent of the difference between on account and final dividends, banks' net profits rise by 0.11%, which is a significant figure. In other words, if banks perform according to this very important Riba- Free Banking principle, not only will they not lose but make more net profit. In addition, a more law-abiding and efficient performance in granting the actual on account profits and calculating them more definitively at the end of the period can greatly encourage the attraction of more banking resources and eliminate any doubts related to the contracts with varying yields verging on usury.

 
Keyword(s): NET PROFIT OF THE BANK, RIBA , FREE BANKING, THE DIFFERENCE BETWEEN THE REALIZED AND ON ACCOUNT PROFITS
 
 
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APA: Copy

GHAEMI ASL, M., & MATIN, S., & BAFANDEH IMANDOUST, S., & MOUSAVI BARRODI, S. (2016). EXAMINING THE DETERMINANTS OF NET INCOME IN RIBA-FREE BANKING WITH AN EMPHASIS ON DIFFERENCES BETWEEN REALIZED AND ON ACCOUNT PROFITS (CASE STUDY: IRAN'S RIBA-FREE BANKING SYSTEM). JOURNAL OF ISLAMIC ECONOMIC STUDIES, 8(2 (16) ), 105-136. https://www.sid.ir/en/journal/ViewPaper.aspx?id=569712



Vancouver: Copy

GHAEMI ASL MAHDI, MATIN SHAHAB, BAFANDEH IMANDOUST SADEGH, MOUSAVI BARRODI SAYYED MAHDI. EXAMINING THE DETERMINANTS OF NET INCOME IN RIBA-FREE BANKING WITH AN EMPHASIS ON DIFFERENCES BETWEEN REALIZED AND ON ACCOUNT PROFITS (CASE STUDY: IRAN'S RIBA-FREE BANKING SYSTEM). JOURNAL OF ISLAMIC ECONOMIC STUDIES. 2016 [cited 2021May16];8(2 (16) ):105-136. Available from: https://www.sid.ir/en/journal/ViewPaper.aspx?id=569712



IEEE: Copy

GHAEMI ASL, M., MATIN, S., BAFANDEH IMANDOUST, S., MOUSAVI BARRODI, S., 2016. EXAMINING THE DETERMINANTS OF NET INCOME IN RIBA-FREE BANKING WITH AN EMPHASIS ON DIFFERENCES BETWEEN REALIZED AND ON ACCOUNT PROFITS (CASE STUDY: IRAN'S RIBA-FREE BANKING SYSTEM). JOURNAL OF ISLAMIC ECONOMIC STUDIES, [online] 8(2 (16) ), pp.105-136. Available: https://www.sid.ir/en/journal/ViewPaper.aspx?id=569712.



 
 
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