Business And Markets

Troubled Banks Are on Their Way Out: CBI Boss

For years the CBI’s was to manage and control dysfunctional banks in variety of ways, such as setting a limit on balance sheet growth and thereby preventing their closure. Now there is reason to believe that that policy has been consigned to history
Troubled Banks Are on Their Way Out: CBI Boss
Troubled Banks Are on Their Way Out: CBI Boss

Mohammad Reza Farzin, the governor of the Central Bank of Iran, says the regulator plans to dissolve several troubled banks by the middle of the current fiscal year (Sept 21) as part of efforts to restructure the banking sector, prevent the rampant increase in liquidity and ultimately inflation. 
One of the main economic problems has been excessive lending and money creation by some banks, Farzin said in a recent TV interview. "We will not allow these banks to continue," he stressed, adding that "those banks that cannot fix their problems will be dissolved." 
The senior banker, however, did not name the troubled banks on their way out, but noted that the central bank has prepared a list of such lenders and sent to the government, and that the process of dissolution has already begun for some of them.


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