Limits Set on Non-Banking Fixed Assets of Lenders
EghtesadOnline: The regulator has set a ceiling of 30% on fixed non-bank assets that banks and credit institutions are allowed to hold.
The Central Bank of Iran in a new directive has prohibited banks, whether directly or indirectly through subsidiaries, from acquiring non-banking fixed assets.
It also set a 30% ceiling of fixed assets that lenders are allowed to hold, the CBI website reported.
According to the circular, which is an amendment to a previous directive, the guidelines were revised in light of changing conditions and regulatory requirements, as well as obligations set forth in macro- level regarding the necessity of not acquiring and retaining non-bank fixed assets by the country's banking network to help raise the efficiency of the key sector.
Additionally, the ceiling for fixed assets is 30% and if the credit institution is in breach it will be prohibited from acquiring or owning any fixed assets until it readjusts and play by the rules.