Detailed Executive Stage Bank Melli of Iran Research & Planning Department Profit & Loss Sharing Banking Rastin Banking (PLS) Detailed Executive Stage

Collaborative Team ساسان گلباز رياست اداره تحقيقات و برنامه‌ريزي ساسان گلباز رياست اداره تحقيقات و برنامه‌ريزي ژينا آقابيگي معاونت اداره تحقيقات و برنامه‌ريزي بيژن بيدآباد مشاور مهستي نعيمي معاونت اداره حقوقي و دعاوي آذرنگ اميراستوار كارشناس اداره حقوقي و دعاوي سعيد صالحيان معاونت اداره سرمايه گذاري سعيد نفيسي زيده سرايي كارشناس مالي اداره معاملات و تسهيلات مالي عليرضا مهديزاده چله بري كارشناس امور مهندسي اداره بررسي طرح‌ها و نظارت حجت الله قاسمي صيقل سرايي رئيس شعبه مستقل ممتاز بازار بيژن حسين‌پور رئيس شعبه درجه 3 نوبهار سعيد شيخاني بازرس ويژه مديريت عامل محمود الهياري فرد كارشناس اداره تحقيقات و برنامه‌ريزي محمد صفايي‌پور كارشناس اداره تحقيقات و برنامه‌ريزي ناديا خليلي ولائي كارشناس اداره تحقيقات و برنامه‌ريزي سيدعلي حسيني كارشناس اداره سازمان و روشها

PLS banking Definition The bank is a an authorized agent who on behalf of depositors allocates the deposit resources to specific projects within specified contracts. The investment return (profit or loss) will be distributed among the depositors, Bank, and entrepreneur. The bank can play on the basis of commission, or participation on profit and loss of the project. The bank as depositor's agent is obliged to protect the depositor's right and apply her specialized possibilities for preserving depositor’s benefits. The entrepreneur is a legal entity

PLS Banking Products Products: Financial Instruments: Participation in a special project ‍Participation in a basket of projects Participation in the PLS bank (branch) profit and loss Financial Instruments: Mosharekeh Certificates: is a digital paper issued by the branch of the PLS bank. The owners of the papers will be participated on investment return in proportion to nominal price and duration of partnership in the project. Bank will earns commission in lieu for supplying capital management services to depositors. Pazireh (Subscripted) Certificates: is a digital paper issued by the branch of PLS bank. The owners of this paper will share in the capital of company as her shareholder according to the proportion of the nominal price and duration of partnership.

Interaction and Relation Between Bank and Depositors The bank on basis of Jualah contract arranges a formal agreement with depositors and provide fund management services to depositors. The bank invest their fund according depositor’s request on one of the three types of the PLS products in lieu of receiving a Haqh-al’jualah or commission. Depositor by purchasing Mosharekeh (Partnership)/ Pazireh (Subscripted) Certificates accept Jael (master) and Amel (operator) relationship between depositor and bank. In this contract the bank can be Jael or Amel both.

Interaction Between Bank and Entrepreneur The bank based on Mosharekeh (Civil Participation) contract will enter to negotiation with entrepreneur and play as intermediary. Bank as depositor's agent is obliged to protect the depositor's rights and apply her specialized possibilities for preserving her benefits The Bank will earn revenue in lieu of providing these services for depositors. The contracts of bank with other parties would be on basis of commissions or participation in profit and loss of the product Trustee (Amin): Is responsible for supervising the PLS process on behalf of bank on the quality of carrying the project out by entrepreneur, and also controlling operations and its comparison with approved plan benchmarks. Deciding about resources allocation, auditing, technical supervision, verifying financial statements, … are all of the responsibilities of Trustee.

Arbitration (Hakamiyat) PLS Banking Entities Trustee (Amin) Bank Depositors Arbitration (Hakamiyat) Entrepreneur

PLS Instructions & Regulations Amin Competency Time delay Entrepreneur ability Guarantees, collaterals & Initial inputs New participation Revocation of Depositor Settlement with Entrepreneur Feasibility Reports Insurance Coverage Arbitration (Hakamiyat) Documents and required legal letters Certificates Transactions Force major Project evaluation Certificates Conversion Contracts Standards & Supervision Certificates Issuing General condition of contracts Reporting of entrepreneur Accounting &Auditing Bank Gaines

Operational Process in PLS Banking

ICT based Secondary market of PLS Products

Organization PLS Banking

Organization in PLS Banking Accounting (Calculation) Technical/ Engineering Expert Financial Expert PLS Branch Sub- branch AMIN Financial engineering Other Units Information Cash Other units Board of Directors Strategy Committee of PLS Banking Head quarter Office PLS Office Credit Office Other Offices Attorny Unit Evaluation Accounting Expert committee for interpretation and review of PLS banking Regulations & Processes Economic Expert Technical / Engineering Expert

Research & Planning Dep. Melli Bank of Iran Research & Planning Dep. Bijan Bidabad http://www.bidabad.com bijan@bidabad.com