The 25th Conference on Islamic Banking has opened in Tehran on Monday to review Iran 3-decade banking.
The conference will focus on three decades of strategies on usury-free banking in Iran and the whole world; on ways to improve strategies on usury-free banking and planning Islamic banks for the future.
They will also study Resistance Economy – which was first suggested by the Iran’s Leader – and will assess its possible effects on Islamic banking.
The Leader of the Islamic Revolution had outlined the general policies of Iran’s resistance economy in a decree issued on February 19.
As part of the program, the government must take action to promote “knowledge-based economy and domestic production, especially in strategic products and services, and the consequent reduction of dependence on imports.”
The decree also encourages greater privatization and increased exports of goods and services through legal and administrative reform as well as foreign investment for export purposes.
On February 25, Leader Seyyed Ali Khamenei called on the three branches of the Iranian government to seriously pursue and implement the general policies of the resistance economy.
Ayatollah Khamenei noted that there is a great deal of hope that economic prosperity will occur in the medium term and will partially alleviate the people’s economic concerns if the policies of the resistance economy are implemented seriously.
Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari’ah (Islamic rulings) and its practical application through the development of Islamic economics. The principles which emphasize moral and ethical values in all dealings have wide universal appeal.
Shari’ah prohibits the payment or acceptance of usury (illegal action or practice of lending money at unreasonably high rates of interest.) for the lending and accepting of money, as well as carrying out trade and other activities that provide goods or services considered contrary to its principles.
The principle source of the Shari’ah is The Qur’an followed by the recorded sayings and actions of Prophet Muhammad (pbuh) – the Hadith. Where solutions to problems cannot be found in these two sources, rulings are made based on the consensus of a community leaned scholars, independent reasoning of an Islamic scholar and custom, so long as such rulings to not deviate from the fundamental teachings in The Qur’an.