Yadollah Dadgar; Naser Elahi; Akbar n Keshavarzia
Abstract
In third millennium AD and after 9/11 attacks, financial crisis of 2007, the spread of terrorism, etc., financial and banking regulations have been much stricter around the world. In this era, due to political, economic and legal events, banking rules and regulations have been much faded in Iran. Supervision ...
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In third millennium AD and after 9/11 attacks, financial crisis of 2007, the spread of terrorism, etc., financial and banking regulations have been much stricter around the world. In this era, due to political, economic and legal events, banking rules and regulations have been much faded in Iran. Supervision of financial and banking authorities has been also much lessened in Iran and observance of financial standards has been neglected. Creating interaction and cooperation between usury-free banking system of Iran and international banking system needs a focus on common and mutually-accepted points in the form of proposed standards based on rationalism and ethics. The main objective of present research is to introduce and specify the proposed standards and make comparison between them to render solutions for interaction and expansion of cooperation between Iranian banking system and conventional banking system around the world. The main indices of rationalism and ethics in usury-free banking that are in accordance with conventional banking system and the only difference is the observance of Sharia criteria on these indices include: rules and regulations (internal and international regulations and observance of financial and international indices), beneficiaries’ rights (shareholders, customers, staff and related institutions) and social responsibilities (environment, social welfare, growth, promotion and employment). Financial crisis of 2007 in developed countries including United States of America, members of OECD and EURO region created shocks in economic growth, GDP, interest rate, unemployment rate, ratio of capital to assets of the banking system and the rate of stock price growth and all these factors resulted in making financial and banking regulations stricter in international banking.
Akbar Keshavarzian peyvasti; Ali Azimi Chanzagh
Volume 8, Issue 31 , January 2009, , Pages 29-57
Abstract
The main objective of this research is to settle the fundamental challenges in financial sector, that is to say, "liberalization of Interest Rate". In effect, the main question of research is "How can the liberalization of interest rate on macro economic variables in the course of research be evaluated? ...
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The main objective of this research is to settle the fundamental challenges in financial sector, that is to say, "liberalization of Interest Rate". In effect, the main question of research is "How can the liberalization of interest rate on macro economic variables in the course of research be evaluated? To this end, the literature of the issue of research will be initially reviewed such as: Maxwell, Gupta, Rubini & Martin, Warman & Tirlwall, Westhead & Storey, Then the research model in question will be elaborated and its basic theory will be briefly presented. The effect of interest rate on macro economic variables with the emphasis on the theoretical aspects interest rate can be calculated on the basis of Fisher identity, systematic model using three stage least square (3SLS). In the simultaneous equations system, money demand function, investment and growth have been estimated and with approve of Mckinon-Show theory in Iran, the positive effect of financial liberalization on investment and economic growth has been determined.