A decade has been passed since Iran chose to experience a
combination of a nationalized and an Islamic financial system.
Today, the banners reveal the country's pride as having had a
unique experience in Islamic banking and finance in the world.
While, the banking system was nationalized soon after the
revolution of 1979. it took a few years before the important Usury Free Islamic Banking Law Was Passed in 1983.
This paper describes Iran's experience with an Islamic financial
system, reviews selected economic and financial indicators, makes
an attempt to diagnose the problems in the financial sector and
offers a few recommendations for deepening the money and
capital markets.
The observations on the performance of the Iranian economic
system, however. does not intend to answer negatively the
important question of "can the Islamic financial system survive"?
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