Economy, Business And Markets

Banker Denies Flight of Deposits

Banker Denies Flight of DepositsBanker Denies Flight of Deposits

Chief executive of EN Bank denied that deposits have exited the banking system as a result of recent cuts in interest rate. CEOs of some major private lenders have reportedly protested against the recent, successive rate cuts, fearing it would lead to a flight of deposits from the banking system. Hossein Motamedi added that he was unaware of the issue, Fars News Agency quoted him as saying on Tuesday. The news comes as Money and Credit Council is reportedly mulling a second rate cut on grounds that the gap between the inflation rate and deposit rates is still too wide. On June 12, CEOs of private banks and credit institutions agreed to offer a maximum 15% interest on one-year deposits, down from the previous 18%.