Measuring the formalization of the lending in Iranian banking Case Study: Shiraz Mellat Bank

Contracts in Islamic banking are divided into two main groups, exchange contracts and participation contracts. In partnership contracts, the relationship between banks and depositors is forming according to the sharing depositor on gains from financial and business activity. The actual connection will be required in exchange contracts and monetary connection is not enough.
Formalization is one of the practical problems in Islamic banking. As a result, Contracts used in banking, Is un-Islamic. In this paper we investigate the formalization in Islamic banking contracts in Iran. This article uses the survey research methods on Shiraz Mellat Bank.
The results show, formalization of Islamic banking contracts in practice and in the minds of customers and bank employees is very high. Based on answer the questions, customers and bank employees often does not see difference between interest rates and bank profits and also does not see difference between Islamic banking in Iran and the usury banking. On the other hand, formalization construction factors are very high. Include incomplete information on the type of contract, Forgery of documents and lack of real participation of bank in contracts