No More Private Banks, Credit Institutions in Iran
NEW YORK (Dispatches) - Iran’s central bank has ceased issuing permits and licenses for new private banks or commercial lenders, after the collapse of several major institutions froze the savings of hundreds of thousands of depositors.
Leading commercial banks and so-called credit institutions or funds -- whose high interest rates allowed them to expand rapidly over the past 15 years -- have shut or received government bailouts..
"I’ve instructed the central bank not to issue any permits to any new private banks,” President Hassan Rouhani said.
"We’re determined to solve the problem facing depositors at financial credit institutions, which has affected two to three million families,” he said, blaming his predecessor for allowing the unchecked spread of the unregulated lenders.
Leading commercial banks and so-called credit institutions or funds -- whose high interest rates allowed them to expand rapidly over the past 15 years -- have shut or received government bailouts..
"I’ve instructed the central bank not to issue any permits to any new private banks,” President Hassan Rouhani said.
"We’re determined to solve the problem facing depositors at financial credit institutions, which has affected two to three million families,” he said, blaming his predecessor for allowing the unchecked spread of the unregulated lenders.