Supervision of banks should be entrusted to an independent body

Hossein Ayvazlou, a member of the faculty of the university, in a specialized meeting on “Money, Banking and Monetary Policies Proposed to the 13th Government from the Perspective of Islamic Economics”, which is being held this afternoon (Wednesday, November 26) at the House of Thinkers “After the economic crisis of 2007, the world has undergone serious changes in the field of monetary and banking governance,” he said.

He said: “The biggest complication is that the balance is not maintained and we look at issues with a micro perspective, while in a systemic perspective, the issue of monitoring is a big issue.”

He added: “The structure and architecture of the issue is wrong, but we are looking to make the supervision of the bank more difficult, while the structure needs to be reformed.”

Regarding the major problems of banking supervision, the economist said: “The main problem is that we do not have precautionary and operational supervision; A systemic oversight is oversight that is shaped beyond what we seek.

He added: “The stock exchange organization, the central bank and the program and budget organization, no matter how coordinated, but because their structure is different, they can not maintain balance in relation to themselves.”

Ayvazlou said: in macro-prudential supervision, which is beyond the existing supervisory organizations, a balance is formed in these structures. In talks with MPs, we sought to establish such oversight, but no further action was taken. At present, there is no appropriate mechanism in this regard. Risk control is usually not institutionalized.

He said: “In the world, a council on global trade was established for economic stability after 2008, which supported both consumer rights and markets, and it is not the case that separate financial organizations and institutions operate while This council has a regulatory role and does not interfere in matters. Such a structure must be created in our country as well.

The economist added: “Group and collective cooperation is a serious threat in the field of governance that is seen in our country.” Some people who have a tribune can follow their demands, but people who do not have a tribune cannot express their demands. New paradigms need to be created for monitoring. The arrangement of the banking system in the world must also be considered.

“Banking supervision is the operational work of an independent body that operates outside the central bank,” he said.