Economy, Business And Markets

Rules for Banks’ Financial Statements Approved

Rules for Banks’ Financial Statements ApprovedRules for Banks’ Financial Statements Approved

The Central Bank of Iran, Ministry of Economic Affairs and Finance, and Iran Audit Organization Tuesday agreed on the new framework for banks’ financial statements and their audit by regulatory bodies.  

Abbas Kamarei, director of CBI’s department for supervising banks and credit institutions, said all banks are obliged to send their [annual] financial statements along with the independent audits to the CBI by August 19, the CBI website reported.

Banks’ financial statements are supposed to be prepared in line with the CBI’s new framework which was notified to the lenders earlier in February. The bank sent a new set of balance sheet templates to the banks to improve their financial transparency and international operations. The new templates are developed based on International Financial Reporting Standards (IFSB) and in accordance with ‘usury-free banking’ regulations.

As part of the new provision, financial statements should also be reviewed by the independent auditors certified by the Association of Chartered Accountants. The CBI has been trying to promote the services of independent certified accountants to enhance transparency in the banking industry that has often come under criticism for poor oversight and dubious lending practices.

Kamarei stressed that the new framework for financial statements should also be approved by the board of directors of banks.