20496
Call for Improving Banking Competitiveness
Economy, Business And Markets

Call for Improving Banking Competitiveness

A central bank official rejected the claim that the rising number of banks would necessarily foster competition, calling on the Competition Committee to urge lenders to compete with one another in offering better services.
In the past decade, branches of commercial banks and credit institutions increased rapidly, as property prices were climbing. It was thought that it was a sign of good performance if banks bought more buildings and opened new branches.
Farhad Nili, head of the Monetary and Banking Research Institute, believes the committee needs to stop urging banks to physically expand.
“Instead, it should allow them to compete in absorbing deposits via offering diverse services and rates,” he added.
The Money and Credit Council put a 20% cap on deposit rates on April 28, forcing banks and credit institutions to lower their rate ceiling by two percentage points.
Nili said despite the decision, banks can compete in offering diverse rates of sight deposits. However, he added, many lenders offer higher deposit rates to keep up with their peers.
“To improve the banking system, we need to create competitive environment among private and state-owned banks, but some state-run lenders are unfairly supported by the government. This would damage the competitive environment,” Banker news website quoted him as saying on Wednesday.
To address the issue, the official urged the committee to precisely define competition terms and conditions template in an effort to regulate competition environment.
“Taking legal action against unauthorized credit and financial institutions is vital as well, a move that requires the three branches of the government to join forces in tackling the problem,” he concluded.

Short URL : http://goo.gl/gL2IjI

You can also read ...

Qatar, Oman Becoming Iran's New Trade Gateways
Iran is working to curb its trade ties with the UAE, replacing...
Connectivity Central to Iran-India Future Ties
Iranian President Hassan Rouhani’s recent state visit to India...
Coated Steel Strip Production Jumps 42% in 10 Months
Iran’s coated steel strip output reached a record 1.26 million...
Export Billet Prices Climb Amid Higher Offers, Transactions
Iranian export billet prices went up by $5-15 per ton on an...
Nissan to Test Self-Driving Taxis
Nissan Motor Co is taking its first steps to becoming an...
Renewed Efforts to Sideline US Dollar in Foreign Trade
Months after a meeting between Iran’s Leader Ayatollah Seyyed...
CBI: Inflation at 9.9%
The average goods and services Consumer Price Index for urban...
Rial Gaining Ground
Rial continued its gain against the US dollar in Tehran's...

Trending

Googleplus