An Islamic system for Firms financing in Iran based on of Institutional Approach

Institutional school has special attention to economic, cultural, social and political infrastructures which are basis of Economic Development. Institutional survey and problems facing the Iranian economy has been a concern for economists. One of these problems is how to finance firms and economic projects, which often lead to the injection of the firms and unbridled inflation in Iran. The purpose of this paper is to do an institutional survey on firm’s financial components which are banking, insurance, capital markets and foreign investment. Important questions in this paper are: What modifications should be made in financial institutions? Which is the optimum model of firm’s financing in Iran based on Islamic principles? These problems are also evaluated based on three levels of administrative procedures, norms and values (based on the Williamson comment). Finally, an appropriate system of Islamic finance is presented based on the structure of clusters.