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Support for CBI Move to Clean Up Banking Sector 

Support for CBI Move to Clean Up Banking Sector 
Support for CBI Move to Clean Up Banking Sector 

Over the years private banks are struggling with disparities in the banking system and have resorted to a variety of means to procure funds, Isaac Saeedian, an economist said.
When banks use inappropriate means to get funds it indirectly increases the monetary base and by extension explosion of liquidity not supported by the national economy, Saeedian said. 
“For example, some banks created subsidiary companies and provided large loans to them in the past. Simply put, this has created liquidity that has no foundation in the economy,” ISNA quoted him as saying.  
He said by addressing these issues and dissolving or merging the troubled banks, the problem of excessive bank withdrawals and injection of colossal volumes of liquidity into the economy can be resolved. 

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