Author

• Roohallah Aboojafari

Abstract

One the fundamentals of Islamic economics is the elimination of Riba in economics
activities. Hence, the evaluation of the Islamic banking and elimination of Riba
approaches has always been one of the important questions in the mind of Islamic
economists. A precise look at the available literature in this field, shows that the
proposed approaches has mostly focused on the nature of the banking activities and
tried to put banking contract in the permissible ways. However, one of the very
important things in this regards is to propose new structures to satisfy the goals of
legislators of interest-free banking law.
This paper first of all tries to evaluate the characteristics of Islamic banking system
in Iran in the years that the interest-free banking law has been enforced. After that,
the previously suggested models of organizing the Islamic banking activities are
evaluated and finally, the process of using the venture capital approaches and
models to reorganize some of the allocation activities of Islamic banking system is
proposed.

Keywords

• interest-free banking
• venture capital
• financial system
• development bank