According to Clause C of Article 35 of the Monetary and Banking Law of the country, approved on 1972/07/09, “Each bank is responsible and committed to compensating for any damages incurred by customers as a result of its operations.”
Clause C of Article 35 of the aforementioned law failed to prevent violations by banks, their managers, and employees. According to statistics from July 2020 provided by the National Headquarters for Facilitation and Removal of Production Barriers, approximately 2,400 production units across the country have been seized by agent banks and are facing an uncertain fate or have been shut down. Meanwhile, the Supreme Leader, in April 2015, warned officials by stating, “Some banks, through specific methods, have caused the closure and destruction of some small and medium-sized economic enterprises.”
It appears that the specific methods criticized by His Eminence pertain to circumventing the monetary and banking laws and regulations of the country. This could be prevented by establishing comprehensive rules on the civil liability of banks, their managers, and employees. Therefore, given what has been said and the weakness of the current law on the civil liability of banks, it is clear to all responsible parties that a comprehensive legal provision regarding the civil liability of banks, their managers, and employees towards those who suffer losses, including customers and loan recipients, must be included in the new draft law currently being approved.
