59894
Banks Urged to Pursue Profitability, Transparency
Banks Urged to Pursue Profitability, Transparency

Banks Urged to Pursue Profitability, Transparency

Banks Urged to Pursue Profitability, Transparency

In order to have a healthy bank, branch managers ought to ensure the bank's profitability while abiding by the law and observing transparency. Farshad Heydari, the Central Bank of Iran's deputy for supervisory affairs, made the announcement at a ceremony honoring successful bank and credit institution managers.
"Branch managers have two important roles. The first is to make their banking operations profitable in line with banking regulations and being transparent about their balance sheets," Heydari was quoted as saying by CBI's website. "The other is to act as the engine of the economy by providing appropriate services to the productive and efficient sectors of the economy," he added.
Heydari stressed that the first factor for a healthy bank is to determine whether or not it is profitable.
"If the bank's resources, allocated to the customers as loans, help foster production, employment and economic prosperity while the repayment of those loans is on schedule, we can call the bank healthy but if those loans turn into non-performing loans, the bank is considered unhealthy," he said. "If a business is not profitable, it will weaken over time and the continuation of its existence will be threatened, although profitability must be within the framework of the law."
The CBI official emphasized that the business activities of banks and credit institutions must be under legal limits and profitable. Heydari pointed out that another key factor of a bank's health is its asset quality.
"High quality assets include continued lending with appropriate guarantees and productive investments, while poor quality assets are non-productive and inefficient properties of the banks along with bad loans," he said.
The CBI has embarked on an intensive campaign to bring banks in line with international standards after years of sanctions cut them off from global finance and led them to engage in risky lending and investment, leading to a sharp increase in NPLs.  

 

Short URL : https://goo.gl/lH8fYY
  1. https://goo.gl/VkLQWA
  • https://goo.gl/JB33X4
  • https://goo.gl/eKTYEY
  • https://goo.gl/z9Fx6Y
  • https://goo.gl/mYRekd

You can also read ...

Valiollah Seif
Governor of the Central Bank of Iran said on Wednesday anti-...
Nat’l Virtual Currency in the Offing
Months after the idea was first publicized, it seems that Iran...
5th Indian Wheat Cargo Arrives for Afghanistan in Chabahar
India’s fifth consignment of wheat to be sent to Afghanistan...
Presale Crosses  96,000 Gold Coins
The presale of Bahar Azadi gold coins priced at 14 million...
Spanish Foreign Minister Alfonso Dastis met with President Hassan Rouhani on Feb, 21.
Foreign ministers of the Netherlands and Spain are in Tehran...
The government has required car importers to pay the higher tariffs announced in January.
The government has finally allowed the clearance of imported...
Lexus’ New Crossover to Break Cover  in March
Lexus will pull the covers off of the production version of...
Bank Loans Top $100b in 10 Months
Banks and credit institutions doled out more than 4.62...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus