12042
Ex-Banker Questions Call to Cut Reserve Ratio
Economy, Business And Markets

Ex-Banker Questions Call to Cut Reserve Ratio

A former CEO of Eghtesad Novin (EN) Bank has questioned calls for cuts in reserve requirement ratio, saying the move could hurt the economy as it would add to money supply.
“The extra money which is to be injected in banks need to be channeled towards manufacturing units and industrial activities,” Mohammad Sadr Hashemi said on Wednesday as reported by ISNA.
His comments came a couple of days after Mohammad-Reza Nematzadeh, minister of industry, criticized the Central Bank of Iran for pushing commercial banks to set aside large amounts of deposits, known as the reserve-requirement ratio. The minister claimed he had personally written to President Hassan Rouhani urging him to help reduce reserve requirement ratio.
“Before increasing bank capitals or decreasing reserve ratio, officials need to make fundamental changes in the banking system first so that commercial banks can appropriately finance development projects,” Sadr Hashemi said. Cuts in reserve ratio can only prove effective if manufacturing, agriculture and other sectors are exploited to their full potentials; otherwise, the move will have inflationary effects, he warned.

Short URL : http://goo.gl/TRA5Ux

You can also read ...

Multilateral MoU to Expand INSTC
Railroad entities of Iran, Azerbaijan, Russia and Belarus...
A ceremony was held to mark National Export Day in Tehran on Oct. 21.
Iran’s National Export Day was marked in a ceremony held in...
Istanbul to Host Iranian Expo
The Turkish capital Istanbul will host a four-day exhibition...
CI Ratings Affirms Iran’s Stable Outlook
Capital Intelligence Ratings (CI Ratings or CI), the...
S. Africa-Iran Business Forum Next Week
South Africa’s Department of Trade and Industry and its...
Real Rial Rate Main Booster of Exports
Iranian exports are currently suffering as a result of an "...
Banks Obliged to Set Up Compliance Department
The Central Bank of Iran in its latest directive publicized on...
BMW Offices Raided in Cartel Investigation
BMW’s headquarters were raided by European Union officials...

Trending

Googleplus