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   Proposal For Rationalizing the Rate of Profit of Bank Loans: A Critique  
   
نویسنده S. Soofi Abdollah
منبع Journal Of Money And Economy - 2009 - دوره : 5 - شماره : 3 - صفحه:127 -141
چکیده   

inwinter 1383, the center for research of majlis shura islamic of iran (crmsii)published a proposal on the logic of the prevailing profit rate that thecommercial banks pay/charge on long-term bank loans requiring the executivebranch of islamic republic to lower the average rate of profit by 4.5 percentwithin 18 months of passage of the bill by majlis, to reduce government budgetdeficit by 20 billion rials, to reduce another 4% in the profit rates allwithin two years after passage of the bill and to provide quarterly report tothe majlis on implementation of the law by the executive branch. in whatfollows, i would state and examine both empirically and theoretically, thevalidity of the arguments in support of legislative action on defending therates of profits charged and paid by the banks.

jel: g21; g28, g24; h81.

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