To facilitate microloans the Majlis on Tuesday obliged lenders to diversify assets that can be used as collateral.
The decision was made during the ongoing parliamentary debate on the 2022-23 budget, the parliamentary news agency, ICANA reported.
Accordingly, the CBI in collaboration with Economy Ministry should create online systems to enable shares, securities and units of exchange-traded funds to be put up as collateral with banks.
Earlier the Central Securities Depository of Iran, the capital market clearing house, announced that the groundwork is ready and lenders can use electronic platforms provided by the CSDI to use shares as collateral for lending to shareholders.
In a similar move in late 2021, the Economy Ministry announced lending rules based on which pensioners and salaried employees can borrow up to 1 billion rials from banks without the need for collateral.
In related news, MPs banned the CBI from giving credit to banks without receiving collaterals, obliging the regulator to make public information about credit given to lenders.
The CBI says it has controlled banks’ borrowing from the CBI since 2020 partly by implementing open market operations (OMOs).
The OMO is essentially implemented to control the monetary base and interbank interest rates. Using bonds as collateral to borrow from the CBI is one integral component of monetary policy.
