Central bank of Iran Headquarters in Tehran
Central bank of Iran Headquarters in Tehran

Risky Banks Under CBI Radar

Risky Banks Under CBI Radar

Central Bank of Iran is using a new system of supervision in which risky banks are being closely monitored at a time when the fallout from shadow banks has beset the financial system, a CBI official said.
“CBI has identified risky banks and via the supervision system and is keeping a watch over their income and expenses” the official told Mehr News Agency.
According to the source, some banks have been put on notice for offering higher-than-usual interest rates as it would put their financial position in a more critical condition.
The source added that the supervisory measures are meant to prevent any further crisis in the financial sector attributing the current state of the banking system to weak monitoring in previous years.
CBI, under the governor Valiollah Seif, has been striving to kick-start major reforms in the struggling banking system, including introducing the Banking Reform Bill and the Central Bank Bill which the International Monetary Fund believes will be helpful, as they will provide the tools to deal with distressed lenders and enhance effective supervision over them.
The two bills, however, have yet to find their way to the parliament.
Even though a handful of banks are fighting formidable challenges, including unhealthy balance sheets and thin capital cushions, the recent ruckus surrounding uncertified credit institutions has created mounting concern among the people who have invested in banks and credit institutions.
The uncertified credit institutions began their activities without obtaining a license from the central bank and got permits from other organizations such as the Ministry of Cooperatives, Labor and Social Welfare and the Law Enforcement Forces. Over the years they lured the public by offering sky-high interest on deposits.
They proliferated during the tenure of the former administration and have continued to be the bane of banks. It is reported that the unruly lenders now hold 25% of the entire liquidity.
The government has taken steps to address the issues facing troubled banks, including overhauling the supervisory regime governing the banking system and taking concrete steps to clean up the balance sheets of banks. But there are still real and valid concerns about the banks’ troubled credits and stressed loans.


Short URL : https://goo.gl/yCYNWv
  1. https://goo.gl/RT9PgR
  • https://goo.gl/H6AS8V
  • https://goo.gl/CuFb7d
  • https://goo.gl/odVPFy
  • https://goo.gl/4JkcPT

You can also read ...

German firms, especially those without business links to the US, want to continue their Iran business.
While Germany’s big banks are studiously avoiding Iran-related...
New Rules Allow  Direct Forex Sale
Businesspeople that have validated their purchase orders are...
Iran is the world’s biggest saffron producer and accounts for more than 90% of the global production.
Iran Mercantile Exchange launched saffron futures trading for...
Banking Amendments Approved
The Money and Credit Council approved the Central Bank of Iran...
Iran Khodro Expanding Presence in Iraqi Market
Iran’s largest carmaker, Iran Khodro, is set to export 6,000...
Tesla Admits Model 3 Braking Issue, Promises Fix
Tesla Inc’s Chief Executive Officer Elon Musk admitted on...
Uber Plans Taxi-Hailing  in Japan
Uber Technologies plans to launch its first taxi-hailing pilot...
Prices have been jacked up by car dealers and some makers by 6-22% only in the past few weeks.
Authorities are set to ratify new car prices for models...

Add new comment

Read our comment policy before posting your viewpoints