Economy, Business And Markets

Assets of Credit Institutions Under Tighter Supervision

Assets of Credit Institutions Under Tighter SupervisionAssets of Credit Institutions Under Tighter Supervision

The Money and Credit Council has tightened supervision over credit institutions, which are mostly operating under permits obtained from non-regulatory bodies.

The council revised instructions on how to calculate the ratio of net fixed assets of the institutions to further control their investment in fixed tangible and intangible assets, the Central Bank of Iran announced on its website Sunday.

Monetary officials have been seeking to push credit institutions to play their intermediate role only in the money market, the announcement said.

Hundreds of credit institutions are deeply involved in speculative activity.

Under the revised instructions, credit institutions are obliged to fill in a form reporting their net fixed assets on a monthly basis and make it accessible online to the central bank.

Meanwhile, according to Article 16 of the law seeking to remove production obstacles and improve national financial system as well as a directive announced last year by the central bank governor in this regard, credit institutions ought to sell at least 33% of their excess fixed assets each year, in the course of three years, until they reach the level specified in the directive.