State banks will boost their capital by an estimated 500 trillion rials ($1 billion) by March 2024 by selling their excess assets, a deputy minister of economy said.
"In this year's budget, it has been anticipated that state-owned banks can increase capital by selling surplus assets and making new investments," IBENA quoted Abbas Hosseini, deputy minister of economy for banks, insurance companies and state company affairs, as saying on Saturday.
The government has said it is taking “serious measures to reform the banking sector” and provide better funding for the people and producers, he said. "Restructuring the banking industry is a top priority of the government and the Ministry of Economy."
Hosseini added that banking reform has been under consideration since the government was formed in August 2021. Two key aspects of the restructuring process are the sale of surplus assets and increasing capital.
April 29, 2023 20:12
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State Banks to Shed Excess Assets for Increasing Capital
Non-banking activities of lenders have long been censured by academia and prominent economists on the premise that it is a major hindrance to healthy and transparent banking that has resulted in the explosion of bad debts and non-performing loans
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