1. Monetary and Banking Research Academy
Economic- Juristic Analysis of Usury in Consumption and Investment Loans and Contemporary Jurisprudence Shortages in Exploring Legislator Commandments
Bijan Bidabad
Monetary and Banking Research Academy
(MBRA)
Central Bank of Iran

2. Juristic Methodology Jurisprudence and knowledge Quran Tradition
Consensus
Intellect
Fame
Islamic intellectuals’ way of life
Analogy
Preference
Considering public interest
Blocking the means

3. Interest-Usury-Profit
Exiting usury bound
Consumption and Investment Loans

4. Usury and Non-usury Loans
The loaner must share in profit and loss of the economic activity of loan receiver.
The rate of interest -because of inability to determine the capital productivity rate a priori- should not be determined and conditioned in advance.
Receiving interest in consumption loans is usury and not allowed.

5. Two Paradigms The juristic deduction methodology needs revision.
Ignorance to theosophy principle of jurisprudence is the main source of conflicts.

6. Usury initiates real sector fluctuations
Investor demand for Loan
Bank’s demand for deposits
Saving supply
Bank’s credit supply
Sources of Oscillations
Saving Market
Loan Market
Loan Interest rate
Deposit Interest rate

7. Usury oscillation >>Real sector cycle
If:
Then:
ThUS:
Then:

8. Monetary and Banking Research Academy
Thanks
Bijan Bidabad
Monetary and Banking Research Academy
(MBRA)
Central Bank of Iran