Jurisprudential Analyze of Money Creation by Commercial Banks

Document Type : Original Article

Authors
Alireza Alipanah 1
Mohammad Hasan Taj Langarudi 2
1 Assistant Professor of Law at Shahid Beheshti University
2 PhD Student of Private Law at Supreme Education and Research Institute of Management and Programming (Presidential Administration)
10.30497/fiqh.2017.2320
Abstract
Today in economy we introduce money as a debt and according to it’s debtor we know 3 kinds of money: First kind of money are coins and bills that central bank is debtor and it should pay to public. Second kind of money are central bank’s hoards that central bank is debtor and it should pay to commercial banks. Third type of money is Bank deposits that commercial banks are debtor and should pay to depositor and we discuss the third one here.
For explaining how to create money (or Bank deposits that comes from commercial banks) we have two explanations: First group explains that bank collect capitals because customers don’t take back them together, bank pays to customers more than its credit. This process for bank is only an economy process but paying back this credit for customers is so hard because of tax. Second group believes that bank for bank paying neither needs to collecting capitals but also starts to bank paying without special capitals.
we study this explanation in this article through two suppositions: constructive taking and pelf and we conclude that it (creating credit) is constructive taking and in jurisprudential aspect we call it HARAM. For decreeing we should think on it in a hole seen.
 
Keywords
Commercial banks
Bank deposits
Creating money
Constructive taking
Pelf

  • Receive Date 15 November 2016
  • Revise Date 24 January 2017
  • Accept Date 10 March 2017