Iran's CB Opens a New Window to Stimulate Share Market

The Central Bank of Iran in a bylaw to banks and credit institutions annulled all previous regulations that banned loans to brokerage firms, investment funds and investment holding companies to buy shares.
Banks now can lend to brokerage companies under the relevant legal framework, the CBI website reported. Rules stipulate that the total loans to brokerages should not exceed five times the value of their shareholder equity (SE).
SE is a corporation owners' residual claim on assets after debts have been paid. It is equal to a firm's total assets minus its total liabilities. Equity can be found on a company's balance sheet and is one of the most common pieces of data employed by analysts to assess the financial health of a company.
Previous CBI prohibited banks from giving loans to holding companies whose “main activity was to manage other companies”.