Economist: Banks Failed to Contribute to Resistance Economy
Economy, Business And Markets

Economist: Banks Failed to Contribute to Resistance Economy

A Tehran-based economist has criticized commercial banks for having failed to act in accordance with Resistance Economy, a set of guidelines introduced by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei.
The doctrine seeks to make the economy less reliant on oil revenues by empowering domestic producers and diversifying non-oil exports. Since the guidelines were released in February 2014, the Hassan Rouhani administration has come up with plans to help achieve the set goals and make the economy resistant against external shocks.
In the past few years, Iran’s economy has come under the pressure of western sanctions and, more recently, by plunging oil prices. Policymakers believe the country must find other sources of income to be able to buffer the economy against external shocks.
Citing Mehdi Zaribaf, Banker news website said earlier this week that the structure of banking system “is not conducive to the set objectives as they are unable to create wealth.”
He dismissed efforts made by the previous administration to reform the banking system and considered them “ineffective.”
“Banks should shift attention from investment undertakings to manufacturing activities to contribute to Resistance Economy,” he said. To that end, he called on experts to develop banking models compatible with the concept so that banks are directed towards manufacturing which he considers a “good start.”
Zaribaf also criticized the perception that any economic improvement is tied to the result of the nuclear negotiations, saying, “The current situation is an opportunity to reform the ailing economic structure, and Resistance Economy seems to be the best solution.”
Regardless of the final result of nuclear negotiations, officials and experts must prepare the public opinion for any sudden shocks to the macro economy.
Iran and six world powers known as P5+1 are in the final round of negotiations to reach a comprehensive deal over Iran’s nuclear energy program. If the deal is signed, all nuclear-related sanctions will be lifted in exchange for Iran to limit parts of its nuclear program.


Short URL : http://goo.gl/U5QyZx

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...