Establishment of a Jurisprudential Council in the Central Bank at the Order of the Supreme Leader of the Islamic Republic

A member of the Expediency Discernment Council announced that Ayatollah Khamenei has ordered the establishment of a Jurisprudential Council as a main component in the Central Bank. According to ISNA, Gholamreza Mesbahi Moghadam stated on his Instagram page that this will legitimize people's views on bank interest. This member of the Expediency Discernment Council mentioned that while the Jurisprudential Council has existed before, it only had an advisory role. Mr. Mesbahi Moghadam, who chaired the Budget and Planning Commission in the ninth parliament, had previously drafted a proposal for reforming the banking system, which was not considered due to opposition from the Central Bank. Political analyst Mehdi Mahdavi Azad, residing in Germany, believes that the establishment of such a council will serve as an economic Guardian Council, leading to the dominance of the Qom seminary and conservative clergy over financial and economic foundations. The issue of forming a Jurisprudential Council, alongside the banking reform proposal, has faced opposition from the Central Bank. Kourosh Parvizian, a representative of the Central Bank, stated in a debate with Gholamreza Mesbahi Moghadam that all economic activities are currently conducted based on Sharia laws and laws approved by the parliament and the Guardian Council, adding that adding a component to the Central Bank's structure will complicate monetary and banking issues. However, Mesbahi Moghadam responded by citing instances he claims are against Sharia in banks, mentioning that the law on usury-free banking, passed in 1983, is not being implemented in practice and has been altered in regulations and executive instructions. This member of the Expediency Discernment Council has previously criticized the Central Bank's performance, stating in a televised debate that since the Central Bank finances banks, it should maintain monetary discipline, which has notably been lacking over the past decade. He noted that the Central Bank easily grants credit lines and resource withdrawals to banks, even providing one bank with loans amounting to 106% of its facilities. The establishment of the Jurisprudential Council in the Central Bank was part of the banking reform proposal submitted to the parliament by a committee chaired by Gholamreza Mesbahi Moghadam, but due to opposition from the Central Bank, it was not reviewed in the ninth parliament. It was decided that the Central Bank would present a bill for reforming the banking system in the tenth parliament, but there has been no news of its drafting yet.