Explaining Disadvantages of Execution of Banking Contracts in Iran; The Approach to Realizing the Austerity Economy

Abstract

Proper and efficient use of contracts in the banking sector requires a comprehensive review of all aspects of jurisprudence, legal, economic and financial. At this study, by using descriptive and exploratory techniques and interviewing with experts and survey studying, aspects of vagueness in banking contracts (Case Study: Mudaraba contract) are inferred. To this end, by using the Interpretive-Structural Modeling (ISM), components are analyzed and sequence and relationship between component are acquired. Realization of austerity economy in production-based economy requires proper allocation of resources in the economy and the goal of founding Islamic banking contracts is involvement of this issue.The results indicate that the “weakness and failure of regulations and guidelines”, “central bank monetary policy”, “knowledge of bank employees and bank customers regarding contracts” and “paying attention to the risks prior to the allocation” are the first priorities to be regarded for the correct execution of contracts.Insights gained from this research, helps policymakers and planners for planning and executing contracts, in line with the austerity economy.

Keywords

• austerity economy
• banking contracts
• pathology
• interpretive-structural modeling