Financial Tribune- The share of uncertified financial institutions in the Iranian market significantly shrunk in the first four years of President Hassan Rouhani’s term, as government policies to organize the informal financial market have borne fruit, the governor of the Central Bank of Iran said.
“In the first term of the administration, organizing the illegal money market has been one of the successful endeavors of CBI as a result of which the volume of liquidity held by uncertified institutions declined from 25% to under 10%,” Valiollah Seif was also quoted as saying by CBI’s official news website.
The official pledged that CBI will continue its efforts to regularize shadow banks, which problem snowballed during the previous administrations and continues to vex the financial system.
“We will continue our efforts until no institution would remain beyond the control of central bank in the next fiscal year that begins in March 2018,” he said.
Seif made the statements in a meeting with the chief executives of Iranian banks and credit institutions.
Accompanied by a few CBI officials, Seif also held a meeting with lawmakers and answered questions posed by MPs. He reassured the public of the eventual positive outcome of the drama surrounding illegal financial companies.
Should any of the illegal institutions dealing with people’s deposits go under and become bankrupt, he stressed, the central bank will move swiftly in tandem with the law-enforcement authorities to make sure people’s deposits are safe.