Economy, Business And Markets

MPs Pass New Banking Proposal

MPs Pass New Banking ProposalMPs Pass New Banking Proposal

Iranian lawmakers have passed an interest-free motion that would further regulate banking and monetary operations, IRNA reported on Wednesday. “The banking and monetary operations should be organized and the Islamic banking contracts should be updated to meet today’s requirements”, Mohammad Reza Pourebrahimi, vice-chairman of the economic committee of the parliament said. The motion envisages certain provisions to stop banks’ speculative activities. It also proposes special regulations for lending, depositing and reforming the banking structure, according to the MP. “The proposal seeks to restore the original role of the banks since they have now distanced themselves from their main mandate,” he added. Pourebrahimi noted that lack of compatibility between the structure of banks and the principles of the interest-free banking is the main root cause of failure in promoting a usury-free banking; that is why the lawmakers came up with the proposal to reform the banking structure.