Challenges of implementing partnership contracts in the Iranian banking system and strategies for reform them

Despite the emphasis on the importance of partnership contracts in the economic literature, especially Islamic economics, the share of these contracts in the total facilities of the Iranian banking system has decreased in recent years. This indicates the existence of fundamental problems in the implementation of these contracts. Problems that have caused the central bank of Iran to recommend that the banking system turn to non-participatory contracts. Due to the importance of using real participation in the allocation of financial resources, this study with analytical-descriptive method and using the provisions of a sample of existing lawsuits in this field and reviewing existing studies, examines the problems of using partnership contracts in the banking system and Has provided the institutional innovations needed to address them in Iran. In this regard, the existing problems in arranging partnership contracts in the Iran banking system have been identified. The results show that financial dominance management, increasing the central bank's authority in supervision, organizing the customer credit rating system and the relationship between the bank and the firm, developing investment banking, using the capacity of official judicial experts, reducing the risk of paying facilities, updating the law on interest-free banking. Creating unity of procedure in the format of arranging contracts and calculations related to facilities, improving the staff training system and creating diversity in bank documents have been introduced as the most important institutional innovations needed to solve the existing problems.So, it is suggested that these institutional innovations be seriously included in the agenda of banking network managers.