Money Creation by Banks Under Strict CBI Control

Money issuance by banks is under the stringent oversight of the Central Bank of Iran, the CBI’s head of monetary and credit operations said.
In a talk with state TV, Mohammad Nadali said the majority of money supply is created mainly by banks and as a result of the CBI’s monetary operations.
“A big portion of money is controlled by banks and money circulating among the people accounts for barely 2% of the liquidity in the financial system,” he was quoted as saying by the CBI website.
Put simply, money creation, or money issuance, is the process by which money supply in a financial system is increased.