Abstract
Purpose: This paper aims to explain the organizational structure of Rastin Profit and Loss Sharing (PLS) 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.
 Design: Rastin Banking complies with the nature of the financial intermediary activity (the partnership of depositor in the yields of the fund receiver via the bank). To fulfill this goal, particular organizational structure, accompanying with instruments and workflow are defined.
 Findings: To handle Rastin Banking, particular theoretical and operational regulatory frameworks should be defined to fulfill the participation operations. In this paper, we will have a look at the necessary organizational structure to setup Rastin Banking.
 Research limitations: This plan was formed and tested in Bank Melli Iran in order to propose a model for other banks as well.
 Practical implications: In this system, the investment return of the participation is distributed to the parties of the financial partnership (depositor, entrepreneur, and bank), and it is done by eliminating fixed interest rate, and it is based on the real economy profit (return) of the activity.
 Social implications: Rastin Banking can lead to important positive effects on growth and economic welfare through money and capital markets. Interest rate as an essential factor in conventional banking is not usable in Islamic banking and other similar institutions that work based on partnership, such as mutual funds and saving and loan associations.
 Originality/value: Approach of this system is entirely different from conventional banking. In addition to removing usury in banking activities, Rastin Banking uses the best practical ethic finance to creating safe and public confidence environment for banking operations.
 Article Type: Technical paper
Highlights
As it is expressed, an organization is a social entity that is goal-directed, is designed as deliberately structured and coordinated activity system and is linked to the external environment.4 An organization is made up of people and their relationships with one another
We will have a look at the necessary organizational structure to setup Rastin Banking
The organization needs sufficient instructions and standards for all processes and procedures.12. All these considerations were taken into account to design the organizational structure for Rastin Profit and Loss Sharing (PLS) Banking
Summary
An organization is a social entity that is goal-directed, is designed as deliberately structured and coordinated activity system and is linked to the external environment. An organization is made up of people and their relationships with one another. The organization needs sufficient instructions and standards for all processes and procedures.12 All these considerations were taken into account to design the organizational structure for Rastin Profit and Loss Sharing (PLS) Banking. While informing the customer about the participation rules and regulations through the information portal of Rastin Certificate Market, or through the information desk in the branch executing the Rastin Profit and Loss Sharing (PLS) Banking, the fee related to the project proposal presentation will be taken from the customer (according to the respective instruction) and the information related to the proposed project (project proposal), including economic, technical, and financial justifications of the project, and other related data, will be received from the entrepreneur. From a legal perspective and in compliance with the newly founded financial operations, all the financial, accounting, organizational, and operations must be distinct
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