Economy, Business And Markets

Banks’ Capital to Rise

Banks’ Capital to RiseBanks’ Capital to Rise

The capital of commercial banks is likely to be raised by $5 billion from the resources of the National Development Fund of Iran (NDFI), the deputy for parliamentary affairs of the vice presidency for strategic planning and supervision affairs told MNA on Saturday.

Asked about the possibility of increasing loans to businesses in next year’s budget bill, Alireza Saleh said once banks raise capital from the foreign exchange reserves account, their loan giving power will be enhanced, which is good news for manufacturers.

The issue of raising capital of banks has been underlined in the recession exit plan, said Saleh, who added that the parliament agreed with the basics of the issue at its meeting last Tuesday. The plan has yet to be implemented.  

Foreign exchange reserves are assets held by central banks and monetary authorities, usually in different reserve currencies, mostly the US dollar, and to a lesser extent the euro, the pound sterling, and the yen.