The Central Bank of Iran is preparing a credit rating platform for bank customers based on their creditworthiness, the CBI’s deputy for innovative technologies said.
Speaking on state TV, Mehran Mahramian said the customer credibility check is in line with measures to further improve transparency in the banking system.
To assess the level of trustworthiness, each customer will be assigned a number, “indicating the credibility and discipline in meeting their debt obligations in a timely manner,” the CBI website quoted Mahramian as saying.
“The ratings will be set after assessing the financial performance of the customer within a certain period plus solvency and willingness [to pay].”
For example, customer deferral in paying small debts, such as paying utility bills, will be considered as “unwillingness” to pay the debt. However, if the default is due to bankruptcy or force majeure, it would suggest “insolvency of the customer.”
Creditworthiness will also be considered via other parameters, namely delays and punctuality regarding repayment maturities, financial wrongdoing, bounced checks and tax payments.
Obviating the need for guaranteeing repayment of loans will be a plus in credibility assessment. “The platform for assessing credibility is partially functioning through which customers’ check transactions and loans are logged,” he said.
“The platform will also enable us to detect lending violations by banks,” the official said. In recent years most banks reportedly have been involved in unusually big loans to special customers who have defaulted and are facing corruption charges.
As for other measure to improve transparency, he referred to NAHAB as a key CBI project. The platform generates a special code for Iranians, entities and foreigners residing in the country and will be used to ease IDs of bank customers.
As per the rule, PAYA and SATNA networks will stop processing transactions lacking full IDs. PAYA is the interbank electronic clearing house and SATNA is the CBI’s Real Time Gross Settlement.
In the past two years the CBI has announced rules to improve control over banks and promote transparency of their financial performance. The measures, among other things, help ensure anti-money laundering measures, curb tax evasion and discourage speculation in the forex market.
