Iran’s financial regulator modifies regulations

Business Materials 9 July 2017 16:14

Baku, Azerbaijan, July 9

By Khalid Kazimov – Trend:

The Central Bank of Iran (CBI) has issued new executive directives on capital adequacy and international conformity standards for credit institutions and formation of credit cooperatives amid efforts to reform the country’s banking sector.

The CBI through its website has announced that it had notified the banking system about the directive for calculating capital adequacy ratio of credit institutions.

According to the report, the Money and Credit Council has recently approved the revised directive which has been prepared according to regulations of a number of internationally accepted documents such as IFSB-15, Basel II as well as Basel III.

The report further said that the new regulation is aimed at improving the country’s financial transparency and in the meantime it will help Iranian banking sector to reconnect to the international system.

The new directive urges banks to balance their resources according to various forms of risk including credit risk, market risk and also operational risk.