New CBI Governor Discusses Coordination With Bank CEOs

EghtesadOnline: Newly-appointed governor of the Central Bank of Iran, Abdolnasser Hemmati, met with the chief executives of banks and credit institutions to review challenges facing the banking system and carve out an actionable roadmap.

News ID: ۷۸۳۴۸۴

30 July 2018

According to the official website of the central bank, it took place late Saturday with the aim of rallying support for the new governor who was introduced on Wednesday and coordinating monetary policies.

Hemmati emphasized on maintaining economic stability and calm and called on bank CEOs to fully adhere to CBI directives and approvals, IBENA reported.

Building trust toward the banking system, preparing the ground for rating banks, enforcing financial discipline, reforming the banking system, refraining from unhealthy competitions, conforming to international standards, boosting capital of banks and reducing the pressure of mandatory loans were the main topics of discussion, Financial Tribune reported.

Gholamhassan Taqi Nattaj, CEO of Ghavamin Bank who was present at the meeting, said that during this meeting, issues and problems such as bank interest rates, annual general meetings, balance sheets, income statements and tax problems were discussed.

He said bank interest rates, which have been reported in past weeks to be slated for another change in the foreseeable future, were a major talking point and added that the new governor also stressed on greater collaboration between banks and the central bank to facilitate things for customers, depositors and loan applicants.

Hemmati, 61, is the former head of Central Insurance of Iran who had been recently tipped to become Iran’s next ambassador to China.

Despite efforts by his predecessor Valiollah Seif in implementing reforms in the ailing banking system and halt a run on the rial, experts believe Iran’s litany of problems will not go away unless a new outlook is adopted.

Hemmati is a veteran banker who holds a PhD in economics. He has formerly served as chief executive of state-run Bank Melli Iran, the country’s largest bank, and the private Sina Bank, affiliated to Mostazafan Foundation.

His name, however, is mostly associated with the insurance industry. Between 1994-2006, he was the president of CII—the sole regulator of Iran’s insurance industry.