44712
Rouhani Signs Banking Reform Plan Into Law
Rouhani Signs Banking Reform Plan Into Law
  1. Economy
  2. Business And Markets

Rouhani Signs Banking Reform Plan Into Law

  1. Economy
  2. 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 ...

About 73.97 million bank cards were at least used once during the month to Jan. 19.
Shaparak, Iran’s nationwide payment network, processed 1.09...
Robot Waiters Coming to Tehran
The first robotic complex in Iran housing a number of...
Finnova co-working space in Tehran.
As Iran’s startup ecosystem grows, startups and accelerators are...
Biotech Indispensible to Ensure Iran’s Food Security
Biotechnology is an indispensable tool to ensure food security...
The parliament-approved budget needs the final endorsement of the Guardians Council before it becomes a law.
The Iranian Parliament approved the outlines of the budget for...
Rail Transit MoU With Kazakhstan
Iran and Kazakhstan have signed a memorandum of understanding to...
Suspicious Bank Activities Under Scrutiny
A new directive concerning direct tax regulations has been...
CBI: No Rise in Interbank Rates
The Central Bank of Iran has denied recent reports that put the...

Trending

Googleplus