Business And Markets

CBI Message to Banks: Clean Up Your Books

CBI Message to Banks: Clean Up Your Books
CBI Message to Banks: Clean Up Your Books

The Central Bank of Iran is expanding the scale of its monitoring of banks’ lending policies with the help of innovative IT tools.
The regulator has set up two IT-based platforms to look at all the specific ways and means banks use to give loans, the CBI said in a press release.
“In the absence of strong supervision and lack of integrated data, banks in the past gave loans without proper investigation into customers’ credibility and the outcome has been a large volume of NPLs,” the CBI said.   
“Moreover, the regulator was unable to regularly monitor banks’ financial structures and their lending performance [preferences]” as would have been expected.
The issue of credit rating has drawn immense attention and criticism as an increasing number of big defaulters has led to the emergence of unhealthy banking and the piling up of failed investments for which banks and their managers are largely held responsible.


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