The Role of Islamic Banking and the Structure of the Financial System in Iran’s Economic Growth

Banks, as one of the most important institutions and a fundamental pillar of a country’s financial system, play a decisive role in economic development and growth. This article seeks to introduce Islamic banking and the structure of the financial system and to examine their impact on economic growth and development within the domain of theoretical discussions. The present study first briefly outlines the main characteristics of Islamic banking and the structure of the financial system, and introduces the advantages of possessing these characteristics, as well as the requirements for the establishment of Islamic banking, methods of financing, and economic development. It then compares Islamic banks with conventional banks in areas such as efficiency, stability, moral hazard, and poverty reduction. The results of the study indicate that previous research supports the hypothesis that Islamic banking and a sound financial system structure constitute a primary channel for economic growth.

کلیدواژه ها:

Economic growth ، Islamic banking ، financial system ، Islamic finance