Requirements for the Revival of Strategic Legal Partnership Contracts to Realize PLS Banking in Usury-Free Banking System

The main challenge faced in the execution of civil partnership contracts within the usury-free banking system has turned to be a Shariah concern in the recent years، which is turned hindered the realization of the banking system''s strategic objectives for economic development in Iran. While legal partnership contracts do not have any of the problems of civil partnership contracts، banks have been deprived of the advantages of these contracts due to the limitations imposed by supervisory authorities. The present research aims primarily to present the banking system with a model based on utilization of the benefits of legal partnership contracts; the key feature being the realization of real profit and loss. This will pave the way for the realization of strategic goals of the banking system; i. e. the cooperation of the banking system with real economy and expediting economic growth and development. Research hypotheses are: 1. It is necessary to revive legal partnership contracts in the banking system; and2. With the help of legal partnership contracts، PLS banking model is presentable. The methodology employed to test the hypothesis is descriptive-analytical which includes a case study of Sepah Bank performance in legal partnership contracts، accompanied by a documentary study of valid sources as well as legal documents of related authorities. The study of Sepah Bank performance in legal partnership contracts shows a real profit of 30% as well as the creation of infrastructures for many industries including but not limited to: steel، cement، tires، roads and construction. Benefits of the utilization of legal partnership contracts for depositors، credit institutions، and most importantly for the realization of strategic goals of national economy have made the revival of these contracts for the banking system to be inevitable. The present paper presents practical models for the enforcement of legal partnership.