Initiative to Stem Shadow Banks’ Growth

President Hassan Rouhani has approved a bilateral initiative between the Central Bank of Iran and the Interior Ministry, which will grant the necessary authority to the two entities to prevent the formation of more illegal credit institutions in the future, a deputy interior minister said. “The guidelines for the two bodies will be devised for the continuous supervision over the activities of all banks and credit institutions in the country and to prevent the activities of any illegal financial institutions,” Babak Dinparast was also quoted as saying by IBENA. According to the official, provincial governors are now reviewing the guidelines and as soon as that is done, an initial draft will be jointly signed with CBI to be approved by the president.