Economic Affairs Specialist at AGCIS
The Iranian media is regularly inundated with advertisements by banks and thousands of uncertified credit institutions that publicize attractive interest rates on people’s savings for up to 30%. These credit institutions do not follow the financial rules of Iran’s Central Bank and have been working throughout the country haphazardly for about two decades, leading to credit disarray and instability in the Iranian financial system. In 2016 and 2017, many credit institutions and bank scertified and noncertified- in Iran declared bankruptcy or were about to. This spectacle is denoted as what Iranians call “non-bank credit institutions”. In fact, noncompliance with the regulations of the main financial authority in the country- the Central Bank resulted in their closure and the loss of client rights.