Economy, Business And Markets

CBI: No Hasty Action Against Uncertified Firms

CBI: No Hasty Action Against Uncertified Firms CBI: No Hasty Action Against Uncertified Firms

Governor of the Central Bank of Iran Valiollah Seif has ruled out any “hasty” action in confronting illegal financial institutions, saying the ordering of these institutions should be done gradually and with prior arrangements.

Seif, who was addressing the Coordination Council of Public Relations at the central bank on Tuesday, drew attention to the many problems besetting the unofficial credit market, saying, “All the chaos could be traced to a lack of transparency.”

“Failure to warn people about the detrimental consequences of investment in uncertified financial firms has massively contributed to the current stalemate,” Seif added.

His comments come after the clampdown on unauthorized financial institutions have entered a critical phase with officials from the government branches warning that these firms should either rectify their behavior or face the consequences.

Last week, Gholamhossein Mohseni Ejei, the judiciary spokesman, said 500 “illegal” credit institutions are operating without  permit from the CBI. He said both the CBI and the Headquarters to Fight Economic Corruption have joined forces to tackle the issue.

Ejei also confirmed the closing of Mizan Credit Institution, a court case that reached a crescendo when its board members were detained on May 17. The defunct institution is to be overtaken by Bank Saderat.

Seif stressed the importance of clear and transparent data and indices in the area of banking, saying that providing people with clear data makes the current economic stability to become tangible in the minds of people.

He said, “Banking system’s interactions with customers should be honest and transparent in order to foster mutual trust. Thus the dialogue between the two should be marked with intimacy and good faith.”

The governor criticized the pervasive media blackout on the services of the incumbent administration and said these services which he dubbed the “ruling system’s asset” should not become a tool for partisan politics.    

Seif also emphasized the importance of “managing the expectations” of people when it comes to the extent of bank lending.

Seif called on PR officers to help bridge the gap between state organizations and the society. He said PR officers can help regain public trust.

“The calm which set in the country after a period of tumultuousness in the economy could not be maintained without winning the people’s trust,” he added.

The head of the public relations office at CBI, Mohammad Ali Karimi, also spoke during the event, pointing to the crucial status of the central bank as the regulator. He said CBI affects the daily lives of people with every decision it makes.

“So, the bank’s policies should be conveyed to the public in an accurate and efficient manner and to achieve this, we should promote a smart and nimble system to become proactive in our communications,” Karimi said.