44712
Rouhani Signs Banking Reform Plan Into Law
Economy, Business And Markets

Rouhani Signs Banking Reform Plan Into Law

President Hassan Rouhani announced on Wednesday he has signed the much-anticipated Banking Overhaul Plan into law, which is seen as a milestone in initiating reforms in the beleaguered banking sector.   
The reforms will be followed by the government sending a separate bill to Parliament, which would further enhance the banking sector, the official website of the president reported.
"Our plans should be centered on economic revival and growth. The overhaul of the banking system is geared toward those goals," he said at a fast breaking gathering in Tehran.
The economy is in dire need of refinancing. However, years of international economic sanctions imposed over Tehran's nuclear program, combined with the populist policies of the past government, have harmed the banking sector. Most banks say they are unable to lend to companies in dire need of credit.
Iran’s lenders have long operated with low capital adequacy requirements and inadequate regulatory and supervisory mechanisms. With the country keen on foreign investment and joint ventures, it is now ready to resuscitate the banking industry and help revive economic growth.
"The government needs to curb the bureaucracy so there would be more space for the creation of new jobs,” the president said in his meeting with university students.
The Banking Overhaul Plan, which had been in the making for a year, seeks to tackle the most pressing issues facing sick banks.  Among other things, it seeks to get financing for short and medium-term projects back on track, provide a cash cushion to tackle bad loans, promote  competition, reorder the money market  by regulating the army of uncertified credit and financial institutions, and increase banks' lending power by raising  their capital.

Short URL : http://goo.gl/jbyJB4
  1. http://goo.gl/kLNXVh
  • http://goo.gl/qo4Pmp
  • http://goo.gl/5tSg0w
  • http://goo.gl/KTg5S4
  • http://goo.gl/C7psPp

You can also read ...

Gov’t Mulling Creation of Forex Open Market
The government has agreed to consider a business community...
India Looks to Operationalize Chabahar by 2019
India is trying to make the strategic Chabahar Port in Iran...
Samer al-Khalil
Syria is ready to establish a rail link with Iran through Iraq...
Gioia Tauro, the port from where Gruppo Ventura shipped locomotives to Iran
From its headquarters in Calabria, the poorest, least-...
No New Shopping Malls Allowed in North Tehran
Construction permits will no longer be issued for new shopping...
Tehran to Host 2 Int’l Food Expos
The Federation of Iranian Food Industries Associations is...
ICJ to Hear Iran’s Lawsuit Against US Over Frozen Assets
The UN's top court will in October hear a case brought by Iran...
Smuggled Copper Ingots Seized
Customs officials at Khorasan Razavi Province’s Sarakhs, the...

Trending

Googleplus