The Role of Owned (Free) Resources in Financing and Non-performing Loans Recovery in Banking System

One of the main challenges in Iran's banking system, is lack of attention to the nature of the resources attracted by customers, especially the lack of understanding of the nature of the resources or facilities received by borrowers. This has led to bank customers often seek to low-cost resources. Due to the lack of familiarity with the owned resources in banking system, bank employees and customers have become indifferrent about the nature of contracts and its compliance with the Sharia law, and using them in an appropriate and correct method.
This article reviews the owned resources from the perspective of the analytical and descriptive and documentary studies. The hypothesis is "for non-performing loans recovery and prevention of formal transactions, banks should use cotracts wich release owned resources." The study shows that the best way to create owned resources are using exchange contracts such as Sale of debt, Ijara ended with ownership, Salaf, diminishing Musharakah, legal Musharakah, Interest Free loan (Al Qard Al hasan), Murabaha, Jaeala, Istisnaa. Because of borrower's ownership on bank sources in the framework of this contracts, it seems that there is no Sharia considerations about how to use the resources and as a result formal transactions in the banking system decrease, too.