The Centre for Islamic Finance: Difference between revisions
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==History== | ==History== | ||
Iran was among the earliest adopters of Islamic banking following the 1979 Islamic Revolution. The transformation of the banking sector began in earnest in February 1981 when the CBI initiated steps to eliminate interest from banking operations. This culminated in the passage of the Law for Usury-Free Banking in August 1983, which mandated the conversion of all banking operations to comply with Shariah within three years. The transition was overseen by a commission of bankers, academics, business leaders, and religious scholars<ref>International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.</ref>. Since then, the Iranian banking system has operated on a profit-and-loss sharing basis, aligning all financial products and services with Islamic law <ref>SpecialEurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges.</ref><ref>International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan.</ref>. | Iran was among the earliest adopters of Islamic banking following the 1979 Islamic Revolution. The transformation of the banking sector began in earnest in February 1981 when the CBI initiated steps to eliminate interest from banking operations. This culminated in the passage of the Law for Usury-Free Banking in August 1983, which mandated the conversion of all banking operations to comply with Shariah within three years. The transition was overseen by a commission of bankers, academics, business leaders, and religious scholars<ref>International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.</ref>. Since then, the Iranian banking system has operated on a profit-and-loss sharing basis, aligning all financial products and services with Islamic law <ref>SpecialEurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges.</ref><ref>International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.</ref>. | ||
==Establishment and Founders== | ==Establishment and Founders== | ||
Revision as of 14:24, 28 April 2025
Overview The Centre for Islamic Finance in Iran operates within a financial system that is deeply rooted in Islamic principles, primarily governed by Shariah law, which prohibits interest (riba) and speculative investments (gharar), instead promoting profit-sharing and ethical investment models. Islamic finance plays a crucial role in Iran’s economic policy, supporting key sectors such as agriculture and manufacturing and helping the country navigate external pressures and sanctions by fostering domestic production and economic resilience [1] [2].
Location
The main regulatory and supervisory authority for Islamic finance in Iran is the Central Bank of the Islamic Republic of Iran (CBI), located in Tehran. The CBI's headquarters is at CBI Tower, Tehran, coordinates 35°45′29″N 51°26′07″E [3] [4].
History
Iran was among the earliest adopters of Islamic banking following the 1979 Islamic Revolution. The transformation of the banking sector began in earnest in February 1981 when the CBI initiated steps to eliminate interest from banking operations. This culminated in the passage of the Law for Usury-Free Banking in August 1983, which mandated the conversion of all banking operations to comply with Shariah within three years. The transition was overseen by a commission of bankers, academics, business leaders, and religious scholars[5]. Since then, the Iranian banking system has operated on a profit-and-loss sharing basis, aligning all financial products and services with Islamic law [6][7].
Establishment and Founders
While there is no single "Centre for Islamic Finance" as an independent institution, the Iranian Association of Islamic Finance (IAIF) serves as a key body promoting Islamic finance research, education, and policy in Iran. Notable founding members include:
- Dr. Ali Salehabadi: President of the Board of Directors of IAIF, faculty member at Imam Sadiq University, and CEO of the Export Development Bank of Iran.
- Late Prof. Dr. Seyed Abbas Mousavian: Former Vice-President of the Board, faculty member at the Islamic Research Institute for Culture and Thought, and member of the Fiqh Council of the Central Bank.
- Dr. Seyed Ali Hosseini: Faculty member at Alzahra University and CEO of the Energy Exchange Co[8].
The Central Bank of Iran (CBI), established in 1960, is the primary financial sponsor and regulator for all Islamic banking activities in the country [9][10].
Financial Sponsors
Islamic finance in Iran is primarily state-sponsored, with the Central Bank of Iran overseeing the sector. The government, through the CBI, provides regulatory, financial, and operational support to ensure compliance with Islamic law and economic policy objectives [11]35. Major state-owned banks and financial institutions are the main actors in the sector.
Website and Contact Information
- Central Bank of Iran (CBI)
- Website: www.cbi.ir
- Address: CBI Tower, Tehran, Iran
- General inquiries and contact information can be found on the official website5.
- Iranian Association of Islamic Finance (IAIF)
- Website: www.iaif.ir
- Contact details are available on the IAIF website4.
References
- ↑ SpecialEurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges.
- ↑ International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.
- ↑ Wikipedia. (2025, April 6). Central Bank of Iran
- ↑ Central Bank of Iran. (n.d.). General Information, https://www.cbi.ir/section/1372.aspx, https://www.cbi.ir/default_en.aspx.
- ↑ International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.
- ↑ SpecialEurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges.
- ↑ International Monetary Fund. (2021). Islamic Banking in the Islamic Republic of Iran and in Pakistan, https://www.elibrary.imf.org/display/book/9780939934829/ch002.xml.
- ↑ Iranian Association of Islamic Finance (IAIF) – Founding Board, https://iaif.ir/index.php/en/about-en/membersoffounder.
- ↑ Wikipedia. (2025, April 6). Central Bank of Iran
- ↑ Central Bank of Iran. (n.d.). General Information, https://www.cbi.ir/section/1372.aspx, https://www.cbi.ir/default_en.aspx .
- ↑ Wikipedia. (2025, April 6). Central Bank of Iran