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Iranian Banks More Inclined to Borrow From Interbank Market

Banks More Inclined to Borrow From Interbank Market
Banks More Inclined to Borrow From Interbank Market

Banks have significantly cut borrowing from the Central Bank of Iran as the numbers declined more than 40% compared to the same period last year, the CBI governor said.
Instead of borrowing from the CBI, Abdolnasser Hemmati said lenders have been meeting a big portion of their need for liquidity from the interbank market.
“Very promising news indeed. Lenders in recent months have sourced their short-term needs for liquidity mainly from the interbank market,” Hemmati wrote in an Instagram post on Tuesday. 
Interbank market is a market in which banks lend to one another for a fixed term. Most interbank loans are for maturities of one week or less, the majority being overnight.

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