Capital Market Seeks Bigger Share in Funding Small Private Companies

Developing new tools and mechanisms to help private SMEs is among the main goals of the Securities and Exchange Organization, says the organization's chief. 
"The banking sector now accounts for a high percentage of funding while the stock market role to this end is low -- about 20-25%... due to the intricacies of the banking system and high interest rates, there is less inclination to inclination to borrow from banks," Majid Eshqi was quoted as saying by IBENA. 
"Now the capital market is offering innovative instruments such as investment funds, that can be customized with the help of investment banks to meet each company's specific needs," he Eshqi added. 
Iran’s capital market now funds an estimated 25% of the economy, which was a meager 5% in 2011-12 while banks accounted for 95%. The growing interaction of the capital market and business over the past decade shows its potential.