Enforcement of the purports of binding banking documents in Rastin Banking – Part II

2019

JBFEM

Self Cite

This paper aims to explain some auxiliary regulatory pillars and complementary considerations and systems in Rastin Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the auxiliary preparations of this banking system. Rastin Banking complies with the nature of financial intermediary activity (partnership of depositor in the yields of the fund receiver via the bank). In order to fulfil this goal despite particular formation, financial structure, instruments and workflow many other auxiliary considerations are defined to remove banking shortages in a legal framework. To handle Rastin Banking and to remove the common banking obstacles, a set of particular theoretical and operational regulatory frameworks should be defined to fulfil the participation operations. In this paper, we will have a look at the auxiliary legal environment to setup Rastin Banking. This system requires more elaborations for further practical development and adjustment. In this system, the investment return of the participation is distributed to the parties of financial partnership (depositor, entrepreneur and bank), and it is done by eliminating fixed interest rate.

Section: Carrying Out the Subject Of Enforceable Documentsmentioning

confidence: 99%

General Regulatory Framework in Rastin Profit and Loss Sharing Banking:

2019

JBFEM

Self Cite

“…The operation settles through the Non-Usury Scripless Security Settlement System (NSSSS)[9] and simultaneous registration in the CRS. In addition, if the acceptor of the guarantee certificate is a bank and the debtor’s banking accounts are not enough to compensate the debt, the bank can clear the debtor’s claim through the “Bank Documents Execution Unit” (BDEU) (Bidabad et al , 2016a, 2016b) for legal enforcement of the purport of the document.…”

Section: Mortgage Securitization Systemmentioning

confidence: 99%

Mortgage Securitization System (MSS) (a complementary system of Rastin Banking)

2017

IJLMA

Self Cite

Purpose This paper aims to define a new system to facilitate obtaining reliable collaterals and guarantees for financial activities from tangible assets through a new financial instrument of “guarantee certificates”. Design/methodology/approach This system makes it possible to securitize movable/immovable assets into negotiable paper lots, namely, “guarantee certificates”. Each lot of these certificates can be used as a guarantee or collateral for any guarantee-backed activity in banks or other activities. Findings The mortgage securitization system (MSS) securitizes tangible assets and provides necessary collaterals and guarantees to be used for different purposes. The operations are carried out through notary offices. This system, as a complementary system of the Rastin Banking system, can also be executed separately. Research limitations/implications The system is novel and needs to be more elaborated for further practical development and adjustment. Although this paper deals with only securitization of tangible assets, research can also be extended to securitization of intangible assets, through new institutions and rules. Practical implications Many properties and assets can be used as guarantees for observing obligations. The available ways for changing (especially large) properties into small guarantees are not easy and efficient. The MSS was designed to break large assets into many guarantee (certificate) lots and reduce the formalities of mortgaging and its transfer. Social implications This system provides reliance and security upon collaterals and conditions for fast claim-clearing and low formalities without time-consuming adjudication processes. Originality/value Complementary systems in Rastin Banking have been designed to solve prevailing problems of banking and financial activities. The MSS was designed to provide necessary arrangements for transforming assets into negotiable papers.

“…Moreover, queries of online databases restrict abuses. The new method of execution of enforceable documents in the bank facilitates the collection of claims (Bidabad et al, 2017a;2017b). 7.…”

mentioning

confidence: 99%

Change Management of Banking System at National Level by Rastin Banking

2019

RBAOS

Self Cite

The purpose of this study is to change huge structures such as the banking sector of a country needs special innovative methods. This paper shows how we can manage change in a banking sector of a country. Grafting novel efficient processes, and pruning old inefficient ones, and harmonising the organization with new processes and empowering the staff through apprenticeship and knowledge management can put forward the change management. The proposed method of “Prune and Graft of Process” similar to grafting a shoot or bud of a sweet-fruited tree to a bitter-fruited base tree is significant in change management. Accordingly, new processes should be grafted to the system, and all processes that are theoretically or practically against the goals of the organisation should be pruned. New processes and innovations could automatically change the bank performance. Apprenticeship and knowledge management are highly effective in all stages of forming and implementing the change. This plan was formed and tested in Bank Melli Iran in order to propose a model for other banks as well. In a view to explain the applied method of change management in the banking system, we study the steps that Rastin Banking was formed in Bank Melli Iran as a sample. Efficient changes and reforms of large organizations can prevent the society from enormous hurts.