The problems of Islamic banks and their solutions

Translated by: Gholamreza Mesbahi MoghaddamAlthough it’s not long that passes from theoretical proposition and the execution of Riba free banking, by suggesting Islamic financial methods instead of interest based methods, it has been able in this very short time to draw the attention of scholars and researchers in the field world over, in addition to Muslim bankers, capital owners and operators.Although increasing expansion of Islamic banking stems from Muslims’ beliefs, however, the capability of its methods in answering the needs of people and comparative superiority of these methods in comparison with interest based financial methods have also been effective in their development; in the way that today we see the establishment of Islamic banks in different countries, even non-Muslim ones.Beside remarkable successes, Islamic banks encounter with some severe problems that entails scientific effort of experienced scholars and thinkers. The problem of delinquency in debt payments, and finding a solution for making incentive for their on time pay back and compensating the loss of the bank, the dependence of profit rates of Islamic banks on the international interest rates, the unimaginability of loss in investment deposits for people, the problem of constitution of investment funds, moral hazards on the part of the receivers of financial facilities, the problem of government finance and investment in exchange are some of these problems.Explaining the aforementioned problems, in this paper the effort has been put to suggest suitable recourses to get out of them.