Economy, Business And Markets

MRC Backs Banking Reforms With a Caveat

The Majlis Research Center has approved the general outlines of the government’s proposed bill to reform the banking system, but calls for fortifying other proposals with the one put forth by parliamentarians to be fully acceptable
Iran has not seen any meaningful banking reforms in the past six decades. Iran has not seen any meaningful banking reforms in the past six decades.

The research arm of Iran's Parliament has recommended that the lawmakers approve the government's bill to undertake long overdue reforms in the banking system, but only if it is combined with lawmakers' own version of reforms to compensate for its many shortcomings.
Iran's ailing banking system is still based on the Monetary and Banking Law of 1972, which itself is based on an eponymous law passed in 1960 with small changes, meaning that it has been close to six decades since the country has seen any meaningful changes to its banking system. 
Two administrations and parliaments have been at it for close to a decade and failed at passing comprehensive reforms. President Hassan Rouhani's government also devised two bills: one for the banking system and one for the Central Bank of Iran, but as the process of presenting them to the Majlis took a long while, parliamentarians took matters into their own hands.     


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