41494
Call for Easing Lending Rules
Economy, Business And Markets

Call for Easing Lending Rules

 Kosar Credit Institution has reemphasized the importance of government financial support for increasing the capital of commercial banks as crucial to energizing the banking industry.
“The burden of financing lies on the banking network which is suffering from a liquidity crisis; therefore, repayment of government debt to commercial lenders will significantly mitigate the problem,” Isa Rezaei, CEO of Kosar Credit Institution was quoted as saying by ISNA.
He called for banks’ freedom in providing loans and thereby absorb more investment in return without the CBI’s cumbersome restrictions –a practical strategy which could be effective in raising capital, he said.
Pointing to banks’ large deposits with the CBI – known reserve requirement – he said, “Banks’ monetary resources are parked with the CBI with no actual use. Therefore, to help improve the efficiency of the banking system, it would better for the CBI to release a portion of banks’ monetary resources to enable them to increase lending to both public and private production sectors.”
The government is planning to boost the production sector in the current fiscal year that started in March. However, lack of credit is a major hurdle for the production sectors as banks have choked off lending to companies and interest rates are seen as too high.
The CBI has announced that it plans to cut capital requirement levels for law-abiding banks as opposed to the unregistered lending institutions affiliated to and owned by vested interests.

Short URL : http://goo.gl/W5jhW4
  1. http://goo.gl/1njG1u
  • http://goo.gl/fKbHX5
  • http://goo.gl/nFKnIj
  • http://goo.gl/5fsYrU
  • http://goo.gl/T9RxMf

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...
Exports to Thailand, Indonesia See Biggest Rise
Iran’s exports to Thailand and Indonesia, crude oil excluded,...
Renewed Efforts to Sideline US Dollar in Foreign Trade
Months after a meeting between Iran’s Leader Ayatollah Seyyed...
Shahid Rajaee Port’s Phase 3 Launch on Wed.
President Hassan Rouhani is scheduled to break ground on Phase...
SAIPA Mulling Options to Replace Pride
Reports from the SAIPA Group show that the second major local...
Rial Gaining Ground
Rial continued its gain against the US dollar in Tehran's...
Export Billet Prices Climb Amid Higher Offers, Transactions
Iranian export billet prices went up by $5-15 per ton on an...

Trending

Googleplus