Central Bank of Iran Ties Lending to Rating Report

In a directive to banks and credit institutions, the Central Bank of Iran has obliged borrowers to submit credit rating reports from relevant rating companies.

Financial Tribune- As per the bylaw, lenders must accept the rating letters issued only by a CBI-authorized company.
Regarding the financial strength of rating companies, the CBI has set a minimum capital of 500 billion rials.
The measure is said to be in line with the regulator’s oft-mentioned plan to reform the banking sector. As such, the latest move will likely tighten conditions on borrowers to receive loans.

Sep 25, 2019