a Legal Analysis of the Regulatory Structure of the Unorganized Monetary Market in Iran: from Conceptual Ambiguities to Legislative and Executive Challenges

Document Type : Original Article

Author
Ali Babaei
Master of Science in Private Law, Tabnak University, Lamerd, Iran
10.22034/lc.2026.580025.1771
Abstract
The unorganized money market in Iran, as an integral part of the country's financial structure, plays a prominent role in liquidity flow and macroeconomic policymaking. This market, which includes Qarz-ol-Hasanah funds, credit institutions, exchange offices, and leasing companies, despite meeting some of the needs of the financial community, has created serious legal and economic challenges due to the activities of the Central Bank. The purpose of this research is to examine the legal challenges governing this market, the regulatory pathology, and explain legal solutions for its organization. The research method was descriptive-analytical and data collection was library-based. The findings show that ambiguity in legal standards, weakness in the definition of banking operations, lack of transparency in the legal personality of institutions, and deficiencies in the Central Bank's supervisory tools are among the most important reasons for the expansion of this market. Also, the activities of these institutions have led to disruptions in monetary policies, diversion of resources from the production sector, increased systemic risk, and the creation of social-security risks. This article, by criticizing existing laws, offers solutions such as making establishment conditional on the license of the Central Bank, clarifying the statutes, strengthening the professional qualifications of managers, and effective criminalization.
Keywords
Unorganized Money Market
Unauthorized Credit Institutions
Banking Supervision
Monetary Policies

Subjects