Banker Says Lending Rates Unacceptable

Secretary of Iran's Private Banks and Credit Institutions Association says the current lending rates are too low, stressing that deposit rates must be at least 3% higher than the inflation rate. 
"Banks pay 18% on deposits and are obliged to loan 80% of the deposits at 18%...Banks are not charities they [also] have to make profit and take care of their expenses," Mohammad Reza Jamshidi was quoted as saying by ILNA. 
The senior banker stressed that private banks have made no proposal for increasing interest rates.  Jamshidi added that the current conditions have prompted many to borrow from banks and invest the money into other markets.