Economy, Business And Markets

New Regulations Set for Unregulated Money Market

New Regulations Set for  Unregulated Money MarketNew Regulations Set for  Unregulated Money Market

The Headquarters to Fight Economic Corruption, set up in late 2013 by President Hassan Rouhani, met on Monday night discussing how to sort out the unregulated money market and prevent illegal activities of credit institutions across the country.

Officials at the meeting approved a set of regulations to prevent unauthorized institutions from opening new branches unless they attain "legal permits" from the Central Bank of Iran (CBI), IRNA reported.

The report also noted that activities of credit cooperatives need to be closely monitored and operation licenses of the cooperatives which have failed to abide by the law should be revoked.

The approved regulations will be enforced in six month's time. With the new rules, the rights of the general public, who have deposits with banks and credit institutions, will strictly be upheld and the health of the banking system shall be assured.    

As new regulations are enforced, "the needed situation for the operation of a healthy and dynamic banking system would come about," the report said, citing Vice President Es'haq Jahangiri, who also heads the organization.

Intelligence Minister Mahmoud Alavi also attended the meeting. He said the fight against economic corruption "is at times wrongfully used as a pretext for a battle of differing political perspectives."

"Such negative frictions could take their toll on investors' trust," the minister warned.

The central bank, police force, ministry of cooperatives as well as the judicial system and other affiliated organizations have agreed to jointly take measures to prevent further illegal activities in the money market.