The Central Bank Of Iran Has Been Compelled To Regulate CFIs Crisis

CBI and the Ministry of Economic Affairs and Finance received ultimatum from the Parliament, last week, to regulate the non-bank credit institutions.

After many non-bank credit institutions were bankrupt or were subject to bankruptcy, a group of lawmakers asked regulators to regulate these financial institutions and to manage the looming crisis.

In Iran, banks and financial institutions play a significant role in the economy system of the country. After the privatization of the banking sector in the early 2000's, the CBI (Central Bank of Iran) deal with the entities which are more commonly referred to as Credit and Financial Institutions (CFIs) which were non-bank credit institutions, which formed with the aim of offering small loans to applicants under the supervision of the CBI.