Central Bank of Iran Priorities for Next Year
The Governor of the Central Bank of Iran has named bringing discipline to the banking system and structurally reforming it as "the most important plans of the bank during the next fiscal year" which begins on March 21.
"The new supervision system of the central bank is another one of its plans which is to be established for the first time," Valiollah Seif was also quoted as saying by banker.ir.
The main component of the plan, called the New Model of Supervision Over Banks, initiated by CBI in 2013 was presented to the Money and Credit Council for final approval on Feb. 1 and is said to be employing the latest in international banking experiences and practices.
As touted by CBI officials, local design, adaptability, flexibility, reduction of systematic risk and being regulation-oriented are among the most important characteristics of the new supervision model, based on which Iranian banks will fall under one of four categories regarding the level of supervision they will need.
According to Seif, "transparency in the financial statements of the banks is among other measures which have been put on the agenda of the central bank based on its authority."
Instilling transparency within the Iranian banking system has also been a recurring theme during the current fiscal year, with the CBI hard at work trying to make the banks conform to International Financial Reporting Standards.