30595
Imposed Rate Cuts Unhelpful
Economy, Business And Markets

Imposed Rate Cuts Unhelpful

Imposed interest rates oblivious to the economic realities gives uncertified credit institutions an undue advantage over their law-abiding counterparts, said Mohsen Jalalpour, head of Iran Chamber of Commerce, the website banker.ir reported.
    He expounded his views by saying that when the Money and Credit Council aims at cutting interest rates by decree, law-abiding banks comply while the unruly financial instructions dodge the regulations and offer higher rates to attract savings and deposits.
    “This leaves the law-abiding banks little option but to also raise deposit rates to remain afloat. What ensues is unhealthy competition disrupting the market and causing the flow of deposits” into the lawless institutions.  
The senior representative of the private sector to the MCC defined a “good bank” as one with transparent balance sheets that plays by the rules. He said “bad banks” are those with “unclean” balance sheets that evade the rules.
Jalalpour noted that further rate cuts are necessary for creating a more business- friendly situation but stressed that the MCC is hesitant because its members believe all factors must be taken into account before making any decision on further cutting interest rates.

Short URL : http://goo.gl/3knMt1
  1. http://goo.gl/Yfpu2l
  • http://goo.gl/Qhkz9D
  • http://goo.gl/JdFY3o
  • http://goo.gl/Wnqimr
  • http://goo.gl/Bc5OuV

You can also read ...

Trump Tactic to Sanction Swift May Not Work
The Trump administration abandoned the Iran nuclear deal this...
Forex Rates Decline Continues in Tehran Market
The currency market in Tehran stabilized further on  Sunday...
36% Rise in Iran's Cigarette Tax Revenues
The government earned 2.5 trillion rials ($17.48 million) from...
Snapshot of Iran's Nomadic Economy
The findings of the recent National Population and Housing...
Iran's 9-Month Trade With China Grows 1.8% to $29b
China remains the top customer of Iran’s oil and non-oil goods...
Iran H1 Steel Exports Top 3.5m Tons
Major Iranian steelmakers exported a total of 3.51 million...
Organic Crop Production to Be Piloted in 4 Provinces of Iran
Four provinces of Khuzestan, Fars, Isfahan and Zanjan have...
Q1 Production Index Signals Lackluster Industrial Performance
Iran's major industries staged a relatively weak performance...

Trending

Googleplus