![\"iran-banking-system-is-in-Crisis-400\"](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/sites\/2\/2016\/06\/iran-banking-system-is-in-Crisis-400.jpg\" "\\"iran-banking-system-is-in-Crisis-400\\"")
<\/p>\n<\/p>\n
NCRI – The Iranian regime\u2019s parliament research center has published a report which states that the status of the banking system in Iran is in crisis and that the banks are at risk of bankruptcy.<\/p>\n
On June 7, Fars News Agency, affiliated with the regime\u2019s Islamic Revolutionary Guards Corps (IRGC), reported that in comparison to fiscal figures in 2010, the debts of governmental and non-governmental sectors in the banking system have risen by a factor of 4.8 and 3.1, respectively, since the end of September 2015.<\/p>\n
The parliament research center also reported that “the disaster is getting awful\u201d because 64 percent of all debts held by the banks are toxic assets. The report explains that if these debts are not collected, the total value of bad debts will reach 20 billion dollars. The total amount of capital held by the banks is only 25 billion dollars.<\/p>\n
The parliament research center emphasized that the banking system is in crisis and that the capital requirement of the banks is not enough to meet the monetary claims.<\/p>\n
According to the latest statistics published by the Central Bank of Iran, Hassan Rouhani’s government owed debts of nearly 39 billion dollars to the banks and of about 9 billion dollars to the Central Bank.<\/p>\n
The head of the management and planning organization in Rouhani’s government, Mohammad-Bagher Nobakht, has already announced that the government debt to banks is about 20 billion dollars. Meanwhile, bank officials have indicated that deferred bank payments reach to the amount of 42 billion dollars and 80 percent of this amount belongs to the bank debtors.<\/p>\n
The parliament research center also announced that from 1972 to 2011, the volume of banking activities have been nearly tripled by the non-bank financial institutions. According to this report, a large part of Iran\u2019s monetary market does not follow regulations and monetary supervisions. Additionally, among 7,333 existing financial institutions, about 6,333 do not have legal authorization.<\/p>\n
The parliament research center further announced that six unauthorized financial intuitions have 43 billion dollars\u2019 worth of liquid capital and that this is equal to six percent of the total authorized and unauthorized amount of finance in the banking system.<\/p>\n
This research center claims that the on-going activities of unauthorized financial institutions rely on the different unresponsive organs affiliated with the Central Bank of Iran.<\/p>\n
The Central Bank had previously announced that 20 percent of liquidity in the country is in the hands of these financial institutions. At the same time, some of these predatory institutions such as Mizaan and Samen-Alhojaj have looted people’s properties and their depositors have protested in front of governmental agencies many times.<\/p>\n
On June 2, 2015, the Mizaan financial institution was disbanded with a million account-holders and over a billion dollars in capital.<\/p>\n
Initially, Mizaan had used the logo of the regime’s judiciary. A former member of the reactionary parliament board, Mohammad Dehghan, stated that these institutes rely on some judges to cover up their misdeeds and some of their branches are also within the judicial administrations.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
NCRI – The Iranian regime’s parliament research center has published a report which states that the status of the banking system in Iran is in crisis and that the banks […]<\/p>\n","protected":false},"author":10,"featured_media":46107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[175],"class_list":{"0":"post-20511","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-updated"},"yoast_head":"\n