The longest and most important chapter of the law approved by the Central Bank of the Islamic Republic of Iran on December 5, 2023 is Chapter Five, which is entitled Increasing the Supervisory Power of the Central Bank. One of the legal provisions that is designated in this chapter with the aim of increasing the supervisory power of the Central Bank is Credit Institution Resolution. Although Credit Institution Resolution is familiar to money market activists, the law of the Central Bank of the Islamic Republic of Iran is the first law that has relatively detailed specifications on this legal provision. Article 33 of the above-mentioned law, entitled Credit Institution Resolution, is dedicated to stating the specifications and effects of the beginning of the resolution process. Before the approval of this law and the issuance of the ruling on resolution, the necessity of establishing specific regulations for the bankruptcy of banks and separating them from the general regulations on the bankruptcy of merchants was emphasized by researchers. The loss of the positions of the members of the board of directors and the executive board of the credit institution, the prohibition of banking operations for the credit institution undergoing resolution, and the limitation of the rights of the shareholders of the credit institution are the most important effects of the beginning of the resolution process. Explaining the regulations and effects of the resolution process and stating the objections to this provision of the Central Bank Law regarding this process is necessary, given its novelty in the Iranian law. In order to understand the level of effectiveness and efficiency of what has been decreed, the decrees issued must be evaluated with international standards and criteria; for this purpose, the key characteristics of the efficient resolution processes of financial institutions, which have been developed and published by the Financial Stability Board, have been used as the criterion.
Jafari Samet,A . (2024). Credit Institution Resolution. Quarterly Studies in Banking Management and Islamic Banking, 10(28), 104-127. doi: 10.22034/jifb.2024.475276.1584
MLA
Jafari Samet,A . "Credit Institution Resolution", Quarterly Studies in Banking Management and Islamic Banking, 10, 28, 2024, 104-127. doi: 10.22034/jifb.2024.475276.1584
HARVARD
Jafari Samet A. (2024). 'Credit Institution Resolution', Quarterly Studies in Banking Management and Islamic Banking, 10(28), pp. 104-127. doi: 10.22034/jifb.2024.475276.1584
CHICAGO
A Jafari Samet, "Credit Institution Resolution," Quarterly Studies in Banking Management and Islamic Banking, 10 28 (2024): 104-127, doi: 10.22034/jifb.2024.475276.1584
VANCOUVER
Jafari Samet A. Credit Institution Resolution. Quarterly Studies in Banking Management and Islamic Banking. 2024;10(28):104-127 (In Persian). doi: 10.22034/jifb.2024.475276.1584