Banking system in Iran is based on islamic version and the main point of this system is non usury (Riba) . This type of banking is rooted in Islamic economic values. Therefore, the Islamic banking system is a system based on Islamic rules and contracts. Simply put, there is a direct relationship between bank and customer and facility receiver in traditional banking (usury), and this direct relationship gives rise to a long-standing relationship between debtor and creditor. But in Islamic banking, the funds of the customers of the bank are invested in legal forms and in the form of certain contracts. And what is in Islamic banking in relation to profit is the discussion of the parties' agreement on determining the amount of profit, rather than the common method of determining the amount of profit by the creditor.
In Iran, since the adoption of the Non-Usury Banking act in 1983, a huge development was made in the banking system of the country. The performance of the banking system in recent years has been proven the need to comply with Islamic banking laws and take into account the feedback received from these rules.
In fact, contrary to the impression, the results are comparable to what is traditionally done in the banking system of the world, there is little distance.
Here is a brief summary of some of the Islamic contracts used in the Iranian banking system with a comparative view.
Mudaraba: This contract is defined in accordance with Article 564 of the Civil Code. This type of contract is used for domestic trade, exports and imports.
Pre Buy or Future Contract: An agreement whereby the customer's products are purchased by the bank pecuniary and the goods are delivered in the future.
Oil future contracts: Oil companies also use this method to finance and use as a means of raising capital.
Qard al-hasan or benevolent lending: A contract by which the bank (as a lender) grants a specified amount to the persons (as borrower) in accordance with the terms and conditions.
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