Komijani Sounds Alarm Over Lending by Banks

The governor of the Central Bank of Iran said the banking sector is saddled with high and rising legal obligations to grant loans, which has led to agonizing macroeconomic consequences.    
“Legal mandates [state ordained] for banks to lend compel them to borrow from the CBI. Over-borrowing has led to negative monetary results,” Akbar Komijani said in a talk with IRIB.
Banks have been under mounting pressure for years as they have to both help realize government budget targets and comply with the regulator’s orders to improve their balance sheets.
Komijani added that the burden of financing the economy is mainly on banks while the share of the capital market is consciously meager.