Economy, Business And Markets

Call for Diversifying Housing Loans

Call for Diversifying Housing Loans  Call for Diversifying Housing Loans

Bank Maskan, as the major provider of housing loans, needs to develop and diversify its financial instruments, said the minister of economic affairs and finance on Monday.

In a speech given at the seasonal meeting of the senior managers of Bank Maskan, Ali Tayebnia said that the value of the housing loans offered by the bank need to be in line with the housing price fluctuations.

"Also, the bank should develop new financial tools to provide the youth and low-income households with affordable housing," said the minister, who also called on Bank Maskan to focus on its specialized field of activity, i.e. provide people with proper housing loans.      

However, the bank will not be alone in devising the new financial instruments, said the minister, who promised that relevant government agencies, like the ministry of roads and urban development, the ministry of economic affairs and finance, the Central Bank of Iran and Money and Credit Council will cooperate with Bank Maskan in implementing the new ideas on housing facilities and services.  

Referring to the strategic document that has been newly devised for Bank Maskan, the minister said that full-blown plans have been mapped out by all Iranian banks this year. “This is the first time in the history of the country in general, and the ministry of economic affairs and finance in particular that all affiliated organizations of a body enjoy such integrity.”

The strategic plan for Bank Maskan depicts the bank’s perspective for the next four years, said Tayebnia. The document, which has been approved by the general assembly of Bank Maskan, urges the bank’s credit authorities to increase the volume of deposits.

“It considers that the role of the bank should improve in providing for the citizens’ housing needs,” said Tayebnia, adding that it also requires the bank to boost its supervisory system, and to increase remote inspection up to 80 percent.

Before the integrated banking system comes into operation, “Bank Maskan will need to enhance its efficiency and to increase its operating margin – the ratio of operating income to its revenue -- from a current 118 to 150 percent,” the minister asserted.

The bank should manage its resources and optimize resource allocation, noted the minister, who called for reducing the loan-deposit ratio of the bank to 87 percent (excluding the Mehr housing project).  

The minister advised Bank Maskan employees to behave respectfully toward customers to derive their satisfaction, so that the bank can increase the number of its customers at least by 20 percent.

The priority of the bank’s strategic plan, as Tayebnia put it, is to make objectives qualitative and accessible.

Bank Maskan has 31 operational and quantitative plans to be conducted in the current year, according to Tayebnia. “These plans should be the center of attention not only for the bank’s senior managers, but also by the board of directors, intermediary managers and the bank employees.

Elsewhere in the meeting, CEO of Bank Maskan Mohammad Botshekan said that in the first six months of current Iranian year (March 21-September 22), around 165,000 housing and other loans valued at 42 trillion rials ($1.5 billion) have been awarded to the applicants. Botshekan said that the amount of facilities paid by the bank at the end of the past Iranian year (March 20, 2014) had increased 35 percent compared to the same period of a year before.