56126
Regulatory Rebuke for 10 Banks
Regulatory Rebuke for 10 Banks

Regulatory Rebuke for 10 Banks

Regulatory Rebuke for 10 Banks

The Central Bank of Iran has issued formal warnings to 10 banks for violating interest rates set by the Money and Credit Council, the bank’s deputy for supervisory affairs announced.
“Since MCC–the highest monetary decision-making body –ratified the deposit and lending rates, CBI has issued written warnings to about 10 banks to adhere to the rates set by the council and also notified the exhortative instructions to them,” Farshad Heydari was quoted as saying by Banker.ir.
Back in June, CEOs of private and state-owned banks agreed to lower long-term deposit rates from 18% to 15% with short-term rates set at approximately 10%. Later, the Money and Credit Council approved the cut.
However, some banks have been reported to offer higher interest on savings to avoid a possible deposit flight, which had reignited the old price wars between banks and credit institutions, many of which are struggling with liquidity shortage.    
“The central bank’s inspectors have investigated the violations so that corrections can be made to the set rates,” Heydari added.
Pointing to the CBI’s supervisory measures over the financial statements of banks in the current fiscal year (which began in March 2016), the official said CBI did a comprehensive job in this regard. He added that is why the shareholders’ meetings of banks were held with a delay of 3-4 months.
Heydari added that the banks have now released their financial statements after they were made transparent by the central bank.
According to the official, the main goal of supervision is to maintain the health and financial stability of the banking system through risk management.
“This is the latest form of supervision in international communities and that is why keeping a watchful eye over bank risks, namely liquidity, investment and operational risk, is fundamental,” he said.
Heydari noted that under this supervision, a series of directives will be issued to the banking system that will allow banks to exercise their ruling within their jurisdiction based on corporate governance principles.
The official pointed out that most of the supervisory concerns of CBI has to do with interest rates.
“The link between the inflation rate and interest rates in the country is currently not on an economic basis and therefore the rates must be set according to supply and demand,” Heydari said.
“When more money is supplied and the financial markets become more balanced, we will witness a further decrease in the rates in a way that it will not disturb the equilibrium in any segment of the market.”   

 

Short URL : https://goo.gl/H7eNgf
  1. https://goo.gl/Yuoqwv
  • https://goo.gl/re9wea
  • https://goo.gl/rTDb5J
  • https://goo.gl/d0Siqz
  • https://goo.gl/EuHmVU

You can also read ...

Support for  Forex Measures
The head of Competition Council welcomed efforts made by the...
The looming crisis in the emerging markets, set off by the run on the Turkish lira, has had a more direct impact on the Iranian rial than anything the US has claimed.
Since the beginning of the fiscal 2018-19, the Iranian rial...
CBI: Currency Inflow Growing Steadily
Governor of the Central Bank of Iran said on Saturday that...
UK Firm: Progress Made With Iran Airport Contract
UK-based security solutions supplier Westminster Group said it...
Uber in Talks to Buy Food-Delivery Company
Uber Technologies Inc. is in early talks to buy food-delivery...
Yu Chang Hwang (L) and Mohammad Reza Bakhtiari
South Korea’s new ambassador to Iran, Yu Chang Hwang, said...
Without Waivers, US Sanctions on Iran Will Cripple Iraq
Iraqi officials, struggling to form a new government months...
Watermelon Exports  Exceed $100m
Iran exported 569,974 tons of watermelon worth $106.42 million...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus