Abstract
Installment Financial Sharing (IFS) is a subsystem of Rastin Profit and Loss Sharing (PLS) Banking System, and the guidelines, instructions, organization, workflow and electronic mechanism of Rastin PLS Banking have been put forward for this subsystem as well. Profit in this financial sharing method is based upon the yield of the real sector, and bank as an intermediary of funds, receives a commission as like as an agent, and provides capital management and financial services to financer (depositor) and participates in investment project of the entrepreneur on behalf of the depositor. In installment Financial Sharing, the contribution of the depositor is paid back by installments and ownership of the project is finally transferred to entrepreneur.Financial innovations of "Mughasatah Certificate" and "Musharakah Mughasatah Certificate" and "Rental Mughasatah Certificate" are used in this subsystem. The financer (depositor) of sharing project receives a certificate, which is negotiable in Rastin Certificate Market via the internet.
Highlights
International Journal of Islamic Banking and Finance ResearchVol 3, No 1; 2019 principal and profit of investment to the depositor by installment and transfer the ownership of the project to entrepreneur
Introduction and Objective RastinProfit and Loss Sharing (PLS) banking was designed to implement usury-free Islamic banking
Installment Financial Sharing (IFS) was designed to fulfill Rastin PLS Banking System to complete some of its shortcomings
Summary
Vol 3, No 1; 2019 principal and profit of investment to the depositor by installment and transfer the ownership of the project to entrepreneur. Dividing the Value of Project at the End of Construction Period Allotment of profit of the project between moghsits (depositors) and ghasit (entrepreneur) is one of the important issues of Mughasatah This type of apportionment bases on mutual agreement, but in Installment Financial Sharing (IFS) this apportionment cannot be left to the bank; it was necessary to compile necessary rules for carrying it out . 6. Accounting Procedure for Apportionment In simpler words, ratios of the dividends of each part of the project from the value added of the Mughasatah activity at the end of construction period is calculated on the basis of the yield of capital (deposit) and contributed capital (of entrepreneur) and labor work (of entrepreneur) on the basis of following formulas. Parameters used to calculate the installments for finitude projects contracts are the amount of deposit (K), the entrepreneur’s contributed capital (B), construction period (M), and operational life of the project after construction (T)
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