Payame Noor University of IR. IRAN. journal of islamic finance research 2345-4849 2 2 2014 12 22 Theoretical analysis of islamic general equilibrium model in capital market its relationship with poverty Theoretical analysis of islamic general equilibrium model in capital market its relationship with poverty 17 32 4857 FA Majid Babaei Allameh Tabatabaei university Journal Article 2014 03 06 Nowadays Poverty and underdevelopment are one of the main problems of the countries of the Islamic world. Various political, economic and cultural factors have contributed to the emergence of this phenomenon. Among economic factors, the sovereignty of the interest system has played a decisive role in exacerbating poverty. In recent decades, this dilemma has led Muslim scholars to draw up patterns of unbanked bankers based on the participatory perspective. In this paper, the economic factors of poverty and its solutions and challenges will be explored in the framework of a general equilibrium model whose financial system is based on participatory banking. Participatory banking, due to the optimal allocation of financial resources based on opportunity costs, increases the productivity of capital, which can increase the level of investment and consequently reduce economic growth; that, in the case of a fair distribution of income, there will be a reduction in the level of the poverty. The present study provides a comprehensive overview of various views on the balance of capital markets in an Islamic banking system Nowadays Poverty and underdevelopment are one of the main problems of the countries of the Islamic world. Various political, economic and cultural factors have contributed to the emergence of this phenomenon. Among economic factors, the sovereignty of the interest system has played a decisive role in exacerbating poverty. In recent decades, this dilemma has led Muslim scholars to draw up patterns of unbanked bankers based on the participatory perspective. In this paper, the economic factors of poverty and its solutions and challenges will be explored in the framework of a general equilibrium model whose financial system is based on participatory banking. Participatory banking, due to the optimal allocation of financial resources based on opportunity costs, increases the productivity of capital, which can increase the level of investment and consequently reduce economic growth; that, in the case of a fair distribution of income, there will be a reduction in the level of the poverty. The present study provides a comprehensive overview of various views on the balance of capital markets in an Islamic banking system https://ifr.journals.pnu.ac.ir/article_4857_e02e380faba295b80092649bdc20edc6.pdf