Economy, Business And Markets

CBI Trying to Alter Interest Rates

CBI Trying to Alter Interest RatesCBI Trying to Alter Interest Rates

The Central Bank of Iran (CBI) will do everything in its power to alter deposit rates, and the matter will not rest until certain preconditions are met, said Hamid Tehranfar, CBI’s supervision deputy.

Tehranfar’s remark was made in answer to comments by Kourosh Parvizian, CEO of Parsian Bank, who said mechanisms needed for changing deposit rates involve several defining factors and inflation is only one among many. To compensate losses which banks could incur once deposit rates are lowered, the banking system must become “commission-oriented” before any changes are implemented on deposit rates, Parvizian added.

“Although the CBI welcomes constructive comments and criticisms, executives are not permitted to suggest preconditions for carrying out their duties and implementing the regulations which they are required to,” ISNA quoted Tehranfar as saying.

The deputy added that the CBI is the primary policymaker and supervisor of the banking system and all banks are to unconditionally align themselves with the policies communicated by the central bank. “The CBI expects banking officials to fully comprehend the needs and conditions of the nation and focus their efforts on abiding by laws and effectively implementing regulations.”