The Central Bank of Iran in a statement asked the Majlis to approve banking rules that are drafted and developed by the government.
Board of directors of the CBI sent a letter to the speaker, Mohammad-Baqer Qalibaf, asking him to put the government-backed bill on the agenda.
In the letter the CBI emphasized that it is working on a banking bill “compatible with internationally- acceptable norms”, a press release on the bank’s website said.
Call by the CBI simply means that the regulator expects the legislature to abandon another contentious Majlis-backed bill being debated in the chamber that has created a lot of controversy in recent weeks.
In the letter the CBI appreciated the lawmakers concerns about banking laws, but stressed that it would be logical for the executive branch to be in charge of such crucial issue.
“Much intricacies and sensitivities are attached to the banking law and it will impact the macro economy,” the CBI said, recalling advice by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei who said earlier that the parliament prioritize government-backed bills on critical issues.
The Majlis-backed bill has been censured for unilateralism, among other reasons. Opponents say the Majlis has not sought the views of banking experts and informed opinion makers and the document is drafted by a group of lawmakers who lack sufficient banking knowledge and expertise.
Reiterating their strong reservations about the bill, the letter said, “CBI’s views and expertise have not been incorporated in the bill.” It added that it would soon present its own bill premised on acceptable global norms that also would comprise some provisions of the Majlis-proposed bill.
The parliament’s proposal has been opposed by many economists and bankers, including the Economy Minister Farhad Dejpasand and the former CBIs governor Abdolnasser Hemmati.
Proposed changes in the CBI management structure and obliging it to set up a “development bank” are major points of contention.
Unlike what the MPs say about “promoting CBI independence” under new law, opponents say otherwise. The latter view is that the new law would make the bank more dependent and create conditions for unwanted intervention of irrelevant bodies in national banking affairs.
One sticking point is overhauling the CBI managerial structure. Provisions of the Majlis bill stipulate that a ‘high council’ be created and replace the governor, who will be relegated to second position.
Members of the council will fall in two categories: executive and non-executive. The governor and vice governor will function as executive members while the non-executive will include experts in the banking, monetary, accounting, financial management and legal fields.
In response to the mounting criticism, MPs have attacked the government for its procrastination in submitting a banking bill to Majlis to replace the existing laws that apparently is obsolete and needs reform.
The present laws were passed half a century ago and are riddled with flaws that, among other things, simply failed to safeguard the value of the national currency.
