Economy, Business And Markets

No Bank Facilities for Non-Transparent Firms

No Bank Facilities for Non-Transparent Firms No Bank Facilities for Non-Transparent Firms

Banks and credit institutions have been ordered not to extend any kind of banking services to businesses that have not presented their balance sheets, announced the head of Majlis Economic Commission.

"Lack of transparency is one of the biggest issues for the economy since it impacts social, international and economic issues," Mohammad Reza Pour-Ebrahimi was also quoted as saying by ICANA.

The official noted that the first step to reform the economic structure is to present financial data with full transparency, followed by setting standards and observing them.

"Transparency reduces corruption and increases public trust. Therefore, the issue is important from several aspects," he added.

Pour-Ebrahimi said according to the law, all the firms listed in the Securities and Exchange Organization of Iran are bound to present their balance sheets to the organization and the Ministry of Economy should pursue the matter, but the data presented so far are limited.  

The head of economic commission noted that as of the new Iranian Year (March 21, 2017), natural persons' financial data should also be made available to supervisory bodies.

"The Securities and Exchange Organization of Iran should coordinate with the Central Bank of Iran and the judiciary to help the process [of achieving transparency] move forward," he added.

Pour-Ebrahimi questioned the prerogative of the economy minister in appointing the head of banks and insurance companies, when he also gets to select the head of Audit Organization.

"There are more than 7,000 charities in Iran and none of them has presented their financial statements," he said.

"On the other hand, there is no clear information regarding many companies affiliated with different entities."

The lawmaker announced that Majlis Economic Commission is preparing the draft to upgrade auditing regulations since the current reporting system does not respond to "our economic needs". 

Pour-Ebrahimi also said the ranking of banks and insurance companies should have taken place a year ago.

"Banks rate their customers but they do not have such a system for themselves. There is no difference between first- and second-tier banks, which has created difficulties for the Central Bank of Iran," he said.

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