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Original Research

LEGAL AND ECONOMIC REQUIREMENTS FOR DETERMINING INTEREST RATES AND AUTHORITIES DETERMINING IT IN THE IRANIAN BANKING SYSTEM

PUNEH TABIBZADEH 1, and RASOUL ABDOLLAHI 2.

Vol 17, No 08 ( 2022 )   |  DOI: 10.5281/zenodo.7107483   |   Author Affiliation: Assistant professor, Department of International law, Rafsanjan Branch, Islamic Azad University, Rafsanjan, Iran 1; Phd student in public law, Rafsanjan branch, Islamic Azad University, Rafsanjan, Iran 2.   |   Licensing: CC 4.0   |   Pg no: 1281-1297   |   To cite: PUNEH TABIBZADEH, et al., (2022). LEGAL AND ECONOMIC REQUIREMENTS FOR DETERMINING INTEREST RATES AND AUTHORITIES DETERMINING IT IN THE IRANIAN BANKING SYSTEM. 17(08), 1281–1297. https://doi.org/10.5281/zenodo.7107483   |   Published on: 18-08-2022

Abstract

Bank profit rates are among the variables that play a very important and key role in monetary policy and economic relations of societies. During the past years, the need for comprehensive studies and a comprehensive and comprehensive view in the theoretical and practical field, on the issue of bank profit rates has always been felt. In early 1999, after proposals for adjusting bank profit rates by some experts and economic policymakers and the discussion of some unprofessional issues and a combination of specialized and non-specialized analysis in some newspapers, it was necessary to prevent any previous decision. Start conducting studies in this field by conducting comprehensive studies. Due to the theoretical aspects of the subject, studies were conducted. After these steps, the studies continued by focusing on the practical aspects of the matter and considering the requirements of the law on interest-free banking operations and the conditions of the Iranian economy, and for this purpose, some economic indicators and criteria were used to determine profit rates. In addition, in order to be more aware of the consequences of the decisions taken, extensive studies were conducted on the impact of changes in interest rates on production units and the financial structure of banks, and finally during the years of the Third Development Plan, The Monetary and Credit Council and the Central Bank made changes to profit rates on deposits and facilities.


Keywords

Central Bank, interest, bank profit, banking system