The credit system is a set of public and commercial lending institutions (institutions), which ensures the movement of capital between all participants of financial relations. To date, the basis of this relationship is payment for the risk that is associated with the time and volume of funds between the various economic operators. Throughout the history of such activities contributed to the development of financial relations. Risk time as the risk amount is directly proportional payment for the resources provided. Obviously, the larger volume and longer term given the means, the greater their risk of transience, and the higher the premium for the lender [1, p.727].
With the development of society, science and technology and universal access to knowledge, we have become able to take into account many previously unknown to us on a number of causal factors, whether it is a complex specification or lack of experts capable of advising creditors of the intention (the funding of) the borrower. The type and characteristics of the investee is currently being verified by the bank according to its public statements and taking into account the credit history as well as an analysis of a number of major financial indicators. In the case where funding is required to start a business, the lender gets into a situation of insufficient information, since, with the exception of a business plan, there is not any proof that characterizes repayment. From this it follows that the probability of approval depends on whether the lender is willing to take this risk, and whether the borrower is able to ensure repayment of borrowed funds in the amount of the creditor risk premium. In practice, the bulk of such appeals is rejected due to a too high risk to the lender, as a more detailed study of the borrower plans requires additional cost, and as a result can adversely affect the interest rate to the lender. Such behavior lender is extremely risky for both the organization and for the credit and financial system as a whole. Accordingly, it is not conducive to the development of the economy and the saturation of the market offers from different parties, that is the key to the formation of a real (fair) market prices of goods and services (changing the rules in the banking sector directly affects the rest of the industry).
In general, restrictions on the number of participants in the market of certain goods and / or services leads to stagnation. Therefore, such high risks for the lender to artificially create barriers at the entrance to certain industries. In order for the national economy did not arise a situation like this, between the lender and the borrower should organize a partnership, in which the bank does not have to stop their interaction with the borrower at the stage of issuing funds and monthly check proper payment [2, p.83].
The idea of a financial partnership for the interest-free basis in the banking industry has already been implemented. However, this segment represented only financial and religious organizations, which basically have the charity principle, that in a market economy would not allow credit institutions to operate. The geography of their functioning is limited and barriers to entry for external users is difficult to overcome. Practice shows that the functioning of such institutions, in contrast to conventional lending institutions, which serves as the basis for profit lending rate, a much more stable in times of economic instability. The basic idea of credit and religious institutions (represented at the moment by Islamic banks) is a ban on the establishment of the yield of the money. The foundation for such a relationship is the religious scriptures prohibit lending rate and pertinent to this type of immoral relations. The incentive for repayment are not financial regulators of human behavior based on its commitment to the society [3, p.170].
The basis of the ban on lending rate is a number of reasons:
In the economic environment in which financial relations are based on the percentage of the loan, the borrower must choose only one type of business that is able to generate sufficient yield to meet the needs and financial commitments, plus interest requirements. In this situation, the entrepreneur has to deal with only highly profitable, and sometimes immoral and useless to the society as a whole, the business views. Because of this practice are many socially useful types of businesses are not able to expand its activities by borrowing, or is unable to pass the entry barrier to the creation;
According to ancient tradition of doing business, ethical it is the situation in which the entrepreneur makes a profit, based on the cost of the physical and mental labor. In this respect, obtaining profitability from the provision of funds implies a risk, without effort cost to the lender. In this case, the lender seeks any means to regain their own funds with interest, regardless of how good the investment of funds raised by the borrower, which ultimately reduces the risk (from the point of view of traditional business such activities are considered to be immoral in business);
Loan interest lays in the behavior of creditors’ desire for hoarding. Due to a statistically significant excess of the requirements to the commitments in the economy created funds located outside the flow and the employee only for the payment requirements on financial liabilities. The higher the credit institution and the more successful from the point of view of the market economy of its activities, the higher the amount of funds. This amount is not due to the creation of real products or services, but only a fee for brokering associated with the corresponding risk [4, p.19].
It is believed that the profitability of the banking sector is overpriced compared to many other industries, also require no less the level of education, skills and mental and / or physical labor. Such a system is destabilizing the principles of cultural and socio-economic unity of society.
In today’s economy, this prohibition is due to the fact that the profitability of the operation of creating profitability create cyclical risks in the economy, based on the reconstruction of one type of debt is more risky. The consistent increase in the concentration of risks in the total population results in a deliberately “toxic” instruments, which reached a certain size, destroying the monetary relations appropriate level .
It is well known that the basis of the income of the lender interest rate serves as a reward for the risk of unknown variables that affect the repayment of funds, the average market rate of return and the key rate. Therefore, the transition to the interest-free relations requires training not only on the part of credit institutions, but also the relevant legal and administrative changes in the national economy, namely, the Central Bank of the reform of (our country) or the relevant institution, performing the first level of the bank function [6, p.110].
Considering the possibility of creating such a system, it is necessary to identify a number of mandatory elements and rules, as well as the necessary conditions of the transition.
To switch to an interest-free system of the following conditions is required:
The low level of general inflation at during and 3-5 years;
No sudden jumps change the key rate 3-5 years;
lack of likelihood administrative intervention at period introduction system;
Stability of the banking system (without the players that do not meet standards standards and banks, seen at violation legislation);
Exceptions significant effect of changes in the national currency on the domestic economy in general and district and the banking sector in particular,
Full openness economic entities for regulatory bodies, ie providing tracking capabilities of revenue s, s expense persons involved at relations from non-interest bearing credit organizations. This measure accepted at purposes she’ll lock lending borrowers second order from application loan percent;
Targeting free loans exclusively in the real economy.
These starting conditions allow try to create a system of interest-free relations in the banking sector, for the stable operation of which is necessary to establish an administrative system of coefficients of citizens and organizations, characterizing their solvency and financial responsibility. Such a system would serve as an analog, replacing the ethical component of financial and religious institutions to legal. The basis of the system is to determine the points / borrower ratio, on the basis of its current financial condition, the analysis of its data on the significant income and expenses over the past 5 years, changing its legal status in respect of the property (expensive property), payable to the tax authorities, taking into account credit history . On the basis of the obtained coefficient is formed by the ratio of the urgency and scope of the funds requested by the borrower. Of course, to create such a system will require stricter oversight measures for the financial activities of individuals and organizations. However, the relationship between the lender and the borrower should be completely open and based on the partnership principle. Obviously, it is impossible to organize the financial relationship lender-borrower seeking to exclude risks unknown to the mere “word of honor” [7, p.193].
Tools-free credit organizations may borrow from the practice of Islamic banking, which, in practice, demonstrates the consistency of his system, and adjust them if necessary. Today, for the attraction and placement of resources like credit organizations use the following tools:
Current account, analogue of checking and savings accounts, combines them, and does not include any interest yield. Means owner is free to dispose of them at any time. Credit organization does not use the funds from current accounts to maintain the level of liquidity and does not charge a fee for maintenance. This account is used by the owner for a daily payment transactions [8, p.149].
Investment Account is not a passive interest (ie does not bring profitability as% of total investments), but larger and more long-term than the current account. It is divided into two main types of “Special Partnership” and “Regular partnership.” The main difference lies in the fact that “The regular partnership” as opposed to “special partnership” implies a lot of investors in the same project, while the “special partnership” means to exercise sole investment, in which the bank will act only as an intermediary. As the bank can act as a full partner-investor. Both versions share the same partnership model the distribution of financial results. The company’s profit (investment object) is allocated in accordance with the agreed proportions, based on the proportion of investors and entrepreneurs in the business. The loss is allocated between investors, on the basis of their shares, while the entrepreneur is not responsible. A significant difference in approach is not observed.
Credit in an Islamic bank account, in a general sense, is an analogue of the charity, return account. That is a contributor to charity allows the bank on the basis of interest-free to place these funds. Account fully refinanced by the bank (in accordance with changes in the value of money over time) and at the end of the investor does not receive in excess of the original amount. Thus, the yield is allocated to that part of the charity. It should be noted that for the implementation of socio-economic functions is advisable to limit the possibility of accommodation in the small and medium businesses or for borrowing socially vulnerable layers of the population [9, p.6].
In the event of having to buy a certain type of product, the customer is able to conclude with the bank a contract of sale at an agreed price, which includes the profit from the sale of the bank. That is a credit institution buys goods on behalf of clients for the purpose of resale at a higher price. This type of operation does not differ from the standard target credit, existing interest in the banks, except for the absolute value of margins. However, it is also determined by the maturity and the amount of borrowing (the type of action is called “Murabaha”).
In Islamic banking, there is also the product of analogue leased, called “Ijara”. It is also envisaged the possibility of redemption of the leased property.
The tool, which has similarities with the forward contract is called “Istisna’a”. It is an agreement between the bank and the client on the production, acquisition or construction of a facility for the client in the future at a price fixed at the contract date. Mainly used to finance long-term projects. The client pays the agreed price, or periodically, throughout the period of the agreement or on completion of the works. The peculiarity of this financing tool is a thorough coordination of work schedule, the amounts of costs and quality of the goods. The client has the right to appoint a subcontractor performing construction or production of goods.
These are the main types of instruments used interest-free redistribution of financial flows of Islamic banks. It is important to note that in Islamic banking credit organizations Level 2 additionally funded by the State Treasury, which uses the tax revenues of the budget, as a source of funds (mainly due to data revenue performed uncollectible and protection of socially vulnerable layers of the population).
In order to encourage the inflow of funds, you need to bind factor / points to the history of the client’s financial operations, which will allow everyone to subject economic activity to manage their own credit potential. For example, the availability of open credit accounts (charity) for the last 3-5 years, a period more than a year, depending on their volume increase ratio (a measure of increase is different for nat. Face, family, organization), which will benefit the further opportunities to raise funds for the client. You also need a conversion factor, if an individual enters into a marriage, which would make it one for the family and more beneficial for the implementation of socio-economic functions of the Institute. Upon the termination of this relationship factor is not changed, as the possibility of borrowing both parties shall be suspended until the expiration of the obligations (and their maturity), which are distributed by the decision of the judiciary. The authority to establish a system will be borne by the credit institution of the first level, and the components of the coefficient / points calculation must be open and transparent.
It should also be clearly defined proportions of the distribution of budget funding between the partners, charitable operations of the bank’s Tier 1 and a reserve for the maintenance of the system. The proportions are determined depending on the current economic situation, as well as from the analysis of the functioning of the previous years.
financial control system will make it impossible to reap the benefits of the fraudulent transactions that would make it more secure relations of economic agents in general, as well as to reduce costs to the target backup mechanisms. It is worth noting that unexplained income (in any form) is subject to confiscation and the direction in the resource base of the bank’s Tier 1, for direct charitable redistribution.
An important pillar of maintaining system availability is to analyze the borrowers (2nd tier banks), which will weed out the obviously high-risk, potentially uncollectible and other questionable investments. In addition, in order to improve the financial literacy of the subjects of financial relations, as well as the regulation of the activities of the bank should generate reports “On the reasons for refusal”, which is sent to the client and to the archive of the bank-1 level. In view of the existence of such documents, using the analysis of non-public reporting, it is important to ensure confidentiality between the bank and customers.
In summary, it can be noted that the creation of an interest-free credit system is impossible without changes in the federal legislation and the structure of the state apparatus, as well as improving the financial literacy of the population. Such a transition is a multistage and time-consuming, both for users and for the state, so it can not and should not be adopted without the planned reform of the whole economy.
Currently possible to implement the interim implementation option of interest-free lending. It implies lower interest rates when issuing loans to the target level of inflation -> max 5-6%. The borrower in this system will be able to only the participants of the system, ie, legal and physical persons who have opened in her accounts and deposits. The initial “start” the investor must be CBR, further funding will be involved with the growth of the number of participants and objects in the system of financing.
Авторы благодарны Российскому гуманитарному научному фонду за частичную финансовую поддержку данной работы (Региональный конкурс «Волжские земли в истории и культуре России», грант № 16-12- 63003).
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