Economy, Business And Markets

SEO Urges Banks to Sell Non-Banking Assets

SEO Urges Banks to Sell Non-Banking AssetsSEO Urges Banks to Sell Non-Banking Assets

The equity market will not get hurt if commercial banks stop their firm-running activities and sell their equities there, said the head of Securities and Exchange Organization on Tuesday.

Iranian commercial banks are set to reduce involvement in non-banking businesses “gradually” in the course of three years as already specified by the Money and Credit Council, Ali Salehabadi noted, as reported by IRNA.

The Central Bank of Iran (CBI) earlier ordered all banks to start selling their non-banking assets in the equity market and concentrate on their original task.

“Equities of banks will be offered in block trade sale only,” asserted Salehabadi.

The central bank in the past year expressed determination to have commercial banks relinquish their firm-running activities.

However, the issue has raised concerns among experts who are worried that the CBI’s pressure might even worsen the economic situation.