Analysis of Funding, Resource Allocation and Bad Loan Collections Frameworks(Case Study: 5 Selected Islamic Countries: Iran, Malaysia, Pakistan, Jordan and Bahrain)

In this study, to enhance the capacity of Islamic banking in the country with an emphasis on religious learnings and using nearly half a century of banking experience and financial institutions in the world to examine the experience of Islamic banks in five selected Islamic countries including Iran, Malaysia, Pakistan, Jordan and Bahrain, the question of whether the mobilization, allocation and collection of receivables frameworks are different in these countries is arose out and discussed. In this regard, the business models of banking systems in the selected countries as well as the way of funding, resource allocation and bad loan collection are discussed.
The obtained results show that among the differences between interest-free Islamic banking law enacted in 1983 in Iran with that of other countries, the existence of dual banking system (Islamic banking law along with usual banking rules), resource funding on the basis of Mudaraba Contract, the use of restricted and unrestricted investment deposits, the establishment of an independent legal council to allocate some of delay penalties to the charities, and asymmetry in damage can also be addressed.