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Bank Melli of Iran
Research & Planning Department
Profit & Loss Sharing Banking
)PLS(
Detailed Executive Stage
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‫‪Collaborative Team‬‬
‫‪3‬‬
‫ساسان گلباز‬
‫ژينا آقابيگي‬
‫بيژن بيدآباد‬
‫مهستي نعيمي‬
‫آذرنگ اميراستوار‬
‫سعيد صالحيان‬
‫سعيد نفيسي زيده سرايي‬
‫عليرضا مهديزاده چله بري‬
‫حجت اهلل قاسمي صيقل سرايي‬
‫بيژن حسينپور‬
‫سعيد شيخاني‬
‫محمود الهياري فرد‬
‫محمد صفاييپور‬
‫ناديا خليلي والئي‬
‫سيدعلي حسيني‬
‫رياست اداره تحقيقات و برنامهريزي‬
‫معاونت اداره تحقيقات و برنامهريزي‬
‫مشاور‬
‫معاونت اداره حقوقي و دعاوي‬
‫كارشناس اداره حقوقي و دعاوي‬
‫معاونت اداره سرمايه گذاري‬
‫كارشناس مالي اداره معامالت و تسهيالت مالي‬
‫كارشناس امور مهندسي اداره بررسي طرحها و نظارت‬
‫رئيس شعبه مستقل ممتاز بازار‬
‫رئيس شعبه درجه ‪ 3‬نوبهار‬
‫بازرس ويژه مديريت عامل‬
‫كارشناس اداره تحقيقات و برنامهريزي‬
‫كارشناس اداره تحقيقات و برنامهريزي‬
‫كارشناس اداره تحقيقات و برنامهريزي‬
‫كارشناس اداره سازمان و روشها‬
PLS banking Definition
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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
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Products:
 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
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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
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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.
PLS Banking Entities
Trustee
(Amin)
Bank
Depositors
Arbitration
(Hakamiyat)
Entrepreneur
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Amin Competency
Revocation of
Depositor
Insurance Coverage
Certificates
Transactions
Certificates
Conversion
Time delay
Entrepreneur ability
New participation
Guarantees,
collaterals & Initial
inputs
Settlement with
Entrepreneur
Feasibility Reports
Arbitration
(Hakamiyat)
Documents and
required legal letters
Force major
Contracts
Certificates Issuing
General condition
of contracts
Bank Gaines
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Project evaluation
Standards &
Supervision
Reporting of
entrepreneur
Accounting
&Auditing
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Establish contract
Supervision,
Accounting Reports
&
of supervision and completion
Auditing
of project
Calculation of shares
according to duration of
contract (continuation/
cancellation)
Ressources gathered for PLS
Documentation for control and supervision
on operation and completion of project
Establish Contract
Presentation of Mosharaka
products, instructions and
cancellation rules
Depositors
Proposition of Moshareka
Establishing the gender and quantity
of hypothecs, guarantees and
requested shares according to
instructions
codes
Facilities
paidand
on PLS
PLS Banking
Reporting the steps of completion of
project
Approvals of auditors and auditing units
Estimation of wage and profit
share of entrepreneur after
deduction of costs, taxes and
other legal costs
Approvals of auditors and auditing
units
Logical Relation among the PLS
Banking Entities
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Entrepreneur
Information in relation with Mosharaka/cancellation
of clients including amount, duration of Mosharaka/
cancellation
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e
Pr
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Inform
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Documents of expenditures and costs
an
spent in project
a
di ge
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esou upply fo
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tures
f
s
endi
p
x
E
of
List
Principle
of
Principle
subsystem
Reports of reliabality and
qualification of contractor,
entrepreneur
Evaluation
sub system
re
s,g
ec g
h
t
po din
hy ccor de
e
h
t
s a co
ing hare
n
i
f
s
D e te d
s
e
qu
Operation and Communication
in The PLS Banking with
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Entrepreneur
Principle Evaluation Unit
Datas of background of
entrepreneur
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Data bank of background of
Qualification of
Entrepreneur
Completed forms according to
cancellation or purchase/sale of
mosharaka certificate
C
Co
pro
Completed forms in relation with
deposits or partnership in projects
Data entry Counter
Reception of documents
from clients for
temporary registration
in computer data base
Data base of resume of proposed
projects and entrepreneurs
Information for proposition of project
Client datas- products selected,
proposed products
Id Code and final datas of
each client in data bank of
clients D1
tion of information in connection with
eneur, proposed project specs and other
Collection of information of clients id’s
code
Payment order for transacted
Mosharaka certificate
Delivery of Mosharaka
certificate for purchase/
sale according to market
rate
Datas of entrepreneurs and contractors
Clients Files M5
Cash Counter
Reception of deposits,
hypothecs, guarantees,
evaluation fee, cash share
of clients and payment of
transacted Mosharaka
certificates, registration
of information and clients
datas
Certificate Counter
Registration of new datas or
modification
Payment of Mosharaka
certificates transacted
Resources deposited
within frame of
Moskaraka products
Collection of information min relation with
clients codes and id’s
Establish contract
between clients and bank
and required documents
Evaluation
of guarantis,
Ccounting/Auditing
and non cash hypothecs
of entrepreneur and
calculation of wage of
bank and wage of
entrepreneur, profit /loss
share of depositor and
registration of
information of client
Cash share, payment for
evaluation of project
according to duration o
and type of product
depositor
Copy of delivered mosharaka certificate
Registration of new datas /
modification of old datas
Contraction Counter
Hypothecs and
guarantees and non cash
share
rvision of operation and performance of
r, verbal process, iterruptions and the
reasons
Estimation and paiment
of wageand share of
profit of entrepreneur
Depositor
Facilities paid within
frame of Mosharaka
Copies of contracts
with clients D2
Order for payment of
Mosharaka facilities
Copies of contracts
Da
produ
depos
de
Proposed projects and
specification of entrepreneurs
M3
Projects Evaluation Unit
Evaluation of projects
according to priorities
and technical s and
Report of qualification a, competence
and performance of entrepreneur financial, economic specs
contractor
/
/
Flowchart of Depositor’s Process in PLS
Banking
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/
Flowchart of Principle’s Process in
PLS Banking
Flowchart of Registering in the internet based Portal Processes
/
/
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inbox
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inbox
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inbox
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ICT based Secondary
market of PLS Products
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Organization in PLS Banking
Board of
Directors
Strategy
Committee of
PLS Banking
Expert committee for interpretation and review
of PLS banking Regulations & Processes
PLS Office
Head quarter
Office
Subbranch
Information
Cash
PLS
Branch
AMIN
Technical/
Engineering
Expert
Other Units
Financial
engineering
Accounting
(Calculation)
Credit Office
Accounting
Other Offices
Evaluation
Attorny Unit
Economic
Expert
Technical /
Engineering Expert
Financial
Expert
Other
units
Financial
Expert
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Melli Bank of Iran
Research & Planning Dep.
Bijan Bidabad
http://www.bidabad.com
bijan@bidabad.com
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