Sustainable financing and anti-squandering measures in Rastin banking

Abstract

Purpose

This paper aims to define a set of anti-squandering guideposts to improve the sustainability and efficiency of allocating financial resources to investment projects.

Design/methodology/approach

A set of sustainable financing and anti-squandering measures are proposed for a better allocation of the bank’s financial resources. These measures were derived from the doctrine of “ethic economics”, humanitarian principles and Islamic teachings. Rastin banking provides a base to apply these measures.

Findings

A draft of the regulations for sustainable financing and anti-squandering measures was compiled for Rastin banking operations, which is briefly presented in this paper and can be used as a basis for the codification of the respective laws.

Research limitations/implications

Such kinds of regulations are novel and need to be deeply discussed in the first place. After adaptation, adjustment and performing the necessary modifications, the text of the law can be codified.

Practical implications

Banks through granting loans, credits and other financial facilities can affect the investment projects in such a way to prevent the extravagant consumption of financial resources in investment projects and consider the sustainable development guidelines.

Social implications

The proposed guideposts can be detailed and adopted in other countries, especially those that are inefficient in their banking and financial operations.

Originality/value

Wasteful allocation of financial resources leads to the wastage of resources and reduction of productivity and provides benefit neither for the people nor for the society. Hence, the present paper tries to practically solve the problem for financial operations.

Citation

Bidabad, B. and Sherafati, M. (2017), "Sustainable financing and anti-squandering measures in Rastin banking", International Journal of Law and Management, Vol. 59 No. 6, pp. 939-949. https://doi.org/10.1108/IJLMA-04-2016-0037