Iran Freezes Permits for New Private Banks, Credit Institutions - Bloomberg

Iran Freezes Permits for New Private Banks, Credit Institutions - Bloomberg:

"Iran’s central bank has ceased issuing permits and licenses for new private banks or commercial lenders, following a credit crisis that has seen the collapse of a parallel financial industry, freezing the savings of thousands of depositors.

Several of Iran’s commercial banks and so-called credit institutions or funds -- whose high interest rates attracted widespread popularity over the past 15 years -- have collapsed or received government bailouts in the past year, sparking protests last summer and fueling recent demonstrations against Iran’s political establishment over rising agricultural prices and its handling of the economy.

“I’ve instructed the central bank not to issue any permits to any new private banks since issuing unlicensed permits creates problems," President Hassan Rouhani said Monday in his first major live television appearance since the protests erupted earlier this month."



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