Representation of Term Investment Deposits and Interest-Free Banking Operations

Abstract

The victory of the Islamic Revolution and the transformation of the Iranian political and social system caused the Islamic Consultative Assembly, following the comprehensive and wise theories of the founder of the revolution and the jurists of the era, to legislate in the economic field. By approving the Interest-Free Banking Operations Law and its approval by the Guardian Council, it defined an economic roadmap for institutions in this field and gave commercial activities an Islamic flavor and color so that we could avoid the profiteering of interest that is the result of the capitalist economic system. As a result, in order to obtain lawful and Islamic profits, the bank enters into contracts with the depositor, such as a power of attorney, and enters his liquidity into the market and the cycle of economic activities, and uses it in the areas of installment transactions, musaqat, lease on condition of ownership, and muzara'ah, and deducts the power of attorney from the profits. In this article, the author intends to examine term investment deposits and their power of attorney in the law of interest-free banking operations, the special method of obtaining Islamic profits by banks from investors' investment deposits, and to show the avoidance of financial corruption and the prohibition of taking usury so that economic activities can be carried out in a healthy way. He has used the library method in collecting the available data.