Economy, Business And Markets

Bank Ratings to Remain Undisclosed

Bank Ratings to Remain Undisclosed
Bank Ratings to Remain Undisclosed

As per the new rating system for Iranian banks, each bank will be given a rank that will not be made public, announced the Central Bank of Iran’s deputy for supervisory affairs.

“All banks will be given a rating in the new rating system, but there is no need for the ratings to be publicized,” Farshad Heydari said in a talk with IBENA.

“Rating of the banks will establish an exclusive linkage between the banks and the CBI, and therefore there will be no need to release the results to the public.”

Earlier this month, Heydari had announced that the rating process for Iranian banks will commence in late October and lenders will be classified into four main groups.

“From the eighth month of the fiscal year (starting October 22), banks will be rated and classified under four categories, namely ‘without visible risk’, ‘low-risk’, ‘ average risk’ and ‘high risk’,” he had told the 27th Islamic Banking Conference.

On CBI’s plan of action regarding the matter, he said the central bank is to allocate a ranking to each bank and “that will be the rating of the banks, which will influence interbank interactions and the banks’ operations with CBI”.

According to the official, all Iranian banks will be rated under a single scheme and private or public-sector banks will be treated equally.

“Irrespective of their ownership status, they are all banks. Their rating will be done based on their formation, meaning the way they are structured will play a key part in the way they are ranked,” he concluded.