Intensified Effort to End Shadow Bank Saga

EghtesadOnline: The government, the judiciary and the parliament are ramping up their concerted campaign to put to an end to the saga of illegal credit institutions and increasingly support the thousands of people who have lost their money to them.

News ID: ۷۸۰۳۶۵

12 November 2017

This was announced by President Hassan Rouhani on Saturday following his meeting with the heads of two other senior executive bodies, IRNA reported.

“Earlier, [uncertified] credit institutions were able to obtain permits from various entities but from now on, the Central Bank of Iran will strictly be the only entity handing out these licenses and will exert full supervision, which will help resolve many of the current problems,” he said.

According to the president, many people have faced serious problems after entrusting their deposits to these illegal entities, so the heads of the top three state bodies have joined forces to resolve the persisting issue as soon as possible, Financial Tribune reported.

“It is the duty of the decision-making bodies to redress the problems of people with regard to the shadow banks,” he said, but warned that the central bank is already facing many challenges and cannot cover losses from its limited coffers.

“Credits can be considered for this, but what’s certain is that all three major forces must be united to see this to the end,” he added.

Rouhani also called on the people to be more vigilant in the future and only trust banks and credit institutions that are well known and enjoy the trust of the people.  ffering unusually high interest rates on deposits was one of the tell-tale signs of a shady institution.

While CBI has recently announced that no illegal credit institution is currently active in the markets, as the last of them is being managed by other institutions, many people have yet to be reimbursed the money they lost to the shadow banks.