Economy, Business And Markets

Special Committees Reimbursing Depositors of Shadow Banks

Special Committees Reimbursing Depositors of Shadow BanksSpecial Committees Reimbursing Depositors of Shadow Banks

Four special committees are pursuing the liquidation of the last remaining illegal credit institutions and their main task is to identify the assets of these entities for auction, a deputy Majlis speaker said. 
Masoud Pezeshkian also told ICANA, the parliamentary news website, that the four committees include representatives of the government, judiciary, credit institutions and depositors, which are currently working to compensate depositors of the four struggling lenders, namely Alborz, Vahdat, Arman and Caspian. 
“At the latest meeting of the heads of the executive, judiciary and legislative branches, it was emphasized that representatives of depositors are taking part in committees because they have a bigger concern over the sale of these companies’ assets,” Pezeshkian said. 
Shadow banks, which spawned in the 1990s and mushroomed in the next decade by offering high interest rates, disrupted the country’s monetary market by acting as rivals of legitimate lenders. They were finally dismantled or merged with other banks by the administration of President Hassan Rouhani.
According to President Rouhani, whose administration initiated the crackdown on shadow banks, CBI has so far spent 115 trillion rials ($2.73 billion) to bail out depositors who lost their money in these entities.


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