Iranian Central Bank Steps Up On-Site Supervision to Ensure Financial Stability
The Central Bank of the Islamic Republic of Iran’s (CBI) On-Site Supervision of Banks and Credit Institutions Department has intensified its efforts to ensure compliance with laws, regulations, and directives in a move aimed at bolstering financial stability in Iran.
Objectives
The department’s primary objective is to guarantee the safety, soundness, and compliance of banks and credit institutions in Iran. To achieve this, it conducts on-site examinations of:
- Bank head offices
- Branches
- Representative offices of foreign banks operating in the country
Examination Scope
The scope of these examinations includes:
- Verifying the quality and accuracy of financial information
- Assessing internal controls and risk management practices
- Investigating complaints related to non-compliance with regulations
- Identifying potential risks
- Evaluating corporate governance practices and IT systems to ensure their reliability and security
Collaboration and Communication
In addition to on-site supervision, the department engages in:
- Regular communication with banks, credit institutions, and other relevant organizations to share information and best practices
- Collaboration with internal supervisory departments and international banking authorities to stay abreast of emerging trends and threats
Practical Examination Manuals and Checklists
The CBI’s On-Site Supervision Department is responsible for preparing practical examination manuals and checklists, as well as identifying and addressing weaknesses in bank operations. Its efforts aim to promote a culture of compliance and ensure that Iran’s banking sector operates in a safe and sound manner.
Commitment to Financial Stability
According to recent data, the department has conducted over 19,000 on-site visits since its inception, demonstrating its commitment to upholding financial stability in Iran.