Forceful Measures to Tame Unruly Banks

The Central Bank of Iran has announced tougher restrictions on underperforming banks as part of measures to “control money issuance” by banks.
It increased reserve requirements of five banks by 13% because they “didn’t abide by the rules governing their balance sheets,” the semi-official Fars News Agency quoted an informed source at the CBI as saying.
Reserve requirements not only guarantee deposits, but also serve as a CBI tool to control money circulation, inflation and money supply growth. The CBI determines the reserve requirement ratio of banks.