Business And Markets
0

Banks Told to Curb Borrowing from Central Bank

The CBI’s message to the banking system is clear: focus on implementing effective monetary policies, control excess withdrawals, resolve shareholder issues and coordinate efforts to control inflation and liquidity
Banks Told to Control Overdraft to Tame Inflation
Banks Told to Control Overdraft to Tame Inflation

At a recent meeting with bank CEOs, the Governor of the Central Bank of Iran Mohammad Reza Farzin said banks have six months to rectify their excessive withdrawals.
"If a bank continues to have an imbalanced financial statement, it will be dissolved. All these banks have considerable assets, including real estate, which could be used to address the issue," CBI website quoted Farzin as saying. 
He stressed the need for banks to control overdraft and noted that lenders with poor financial status will be subject to “proper procedures to resolve the issue”. He did not elaborate.
Last week he said the regulator plans to dissolve several troubled banks by September as part of efforts to restructure the long ailing banking industry, prevent the rampant increase in liquidity and ultimately tame the chronic inflation. 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com