Economy, Business And Markets
0

Bank Sepah's Capital Adequacy Ratio to Top 10%

Bank Sepah's Capital Adequacy Ratio to Top 10% Bank Sepah's Capital Adequacy Ratio to Top 10%

Bank Sepah will join the ranks of the few public-sector banks whose capital adequacy ratio meets the minimum standard when the Ministry of Economic Affairs and Finance allocates the approved funds to boost its capital, claimed the bank's CEO.

"With the implementation of the plan to increase the capital of banks, the capital adequacy ratio of Bank Sepah will stand above 10%," Mohammad Kazem Choghazardi was also quoted as saying by Banker.ir.

The chief executive was referring to a decision made by members of the Cabinet regarding increasing the capital of public-sector banks. 

In a session presided over by President Hassan Rouhani in mid-January, the Ministry of Economic Affairs and Finance was obliged to allocate 200 trillion rials ($5.2 billion) of excess funds to increase the government's capital in state-owned banks.

Majlis Research Center earlier published a report late January, declaring that the minimum capital adequacy ratio should be 8%.

The research arm of the Iranian Parliament also announced the capital adequacy ratio of Bank Sepah at 2.46%, which was the second-lowest among the seven public-sector banks mentioned in the report. 

Among these banks, only the Export Development Bank of Iran and Bank of Industry and Mine currently boast a capital adequacy ratio higher than the minimum with 30.86% and 11.90% respectively.

Choghazardi said Bank Sepah has allocated "more than 12 trillion rials ($312.9 million) to small- and medium-sized enterprises in line with the goals of Resistance Economy" principles outlined by the Leader of Islamic revolution Ayatollah Seyyed Ali Khamenei. 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com