The Lending Policies of Islamic Banks in Iran

Nezamaddin Makiyan

in Islamic Perspectives on Wealth Creation

Published by Edinburgh University Press

Published in print May 2005 | ISBN: 9780748621002
Published online March 2012 | e-ISBN: 9780748653096 | DOI:
The Lending Policies of Islamic Banks in Iran

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This chapter discusses the dynamics of loans in the Iranian banking system, which operates under Islamic principles, studies the operations of all Iranian banks and analyses their lending policies. It uses descriptive analysis and an error-correction model to examine the lending activities of Iranian banks. These include rate of return, inflation and state intervention, in which government directives on managing funds have played the most important role. The investigation in the chapter covers the period from 1984 to 2000, using data from the Central Bank of Iran.

Keywords: loans; Iranian banking system; Iranian banks; lending policies; rate of return; inflation

Chapter.  3997 words.  Illustrated.

Subjects: Society and Culture

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