Majlis Calls for Review of Shadow Banks

EghtesadOnline: Parliament Speaker Ali Larijani has called on Majlis Article 90 Commission, which handles complaints, to follow up the case of two credit institutions.

News ID: ۷۷۶۹۰۶

11 June 2017

Larijani ordered a probe into Arman and Caspian credit institutions in Tuesday’s open session after hearing remarks made by a lawmaker on the ongoing saga of illegal money market, IRNA reported.

Depositors for Caspian–an institution formed by CBI after eight illegal credit institutions were merged—and Arman gathered in front of the parliament again on Tuesday and Wednesday to demand an end to the troublesome case of the credit institutions and get their money back.

Ten MPs wrote a letter to the Majlis Presiding Board, asking the parliament to intervene “as it seems that the Central Bank of Iran has not completely adhered to laws and regulations”.

In the missive, according to Financial Tribune, the members urged the parliament to invoke Article 236 which, if approved, will allow the judiciary to intervene.

Twenty-six members of parliament had also previously issued a warning to CBI Governor Valiollah Seif, urging him to settle the case of hapless depositors.

Last week, Mohammad Reza Pour-Ebrahimi, the head of Majlis Economic Commission, had given the CBI a Tuesday deadline to present a full report and close the case of uncertified credit institutions as soon as possible, lest it wants the case to be sent to the judiciary.

While the commission’s meeting with CBI officials convened on Tuesday, MEC’s spokesman reportedly said that because of the large number of ongoing cases, reviewing the matter will be postponed to another session.

The commission’s members also pondered the possibility of invoking Article 236, but no official report has yet confirmed that.