68581
High Overdraft  Fees Paying Off
High Overdraft  Fees Paying Off

High Overdraft Fees Paying Off

High Overdraft Fees Paying Off

As the Central Bank of Iran has beefed up its regulatory watch over monetary and banking operations, its efforts to curb bank overdrafts, especially in the quarter to March 20, 2017, have borne fruit, CBI’s deputy for credit affairs announced.
“If I were in charge, the penalty concerning overdrafts would reach 50%, since this money is hot money and can stoke inflation,” Ali Asghar Mirmohammad Sadeqi was also quoted as saying in an interview with Fars News Agency.
Back in February, Ali Divandari, the head of Monetary and Banking Research Institute, announced that the 34% discount rate set for banks’ overdraft fees is a penalty that prevents them from using CBI resources and investing in other markets since it raises the monetary base and stokes inflation.
According to CBI data, state-owned banks were at the forefront of reducing their debts to CBI, which dropped by 13.5% year-on-year last year.
Private banks’ debts to CBI decreased by over 20 trillion rials ($5.3 million) in the month to March 20.
However, private banks’ debts to CBI witnessed a 206% YOY growth in this period.
Some pundits believe that if CBI were to set a ceiling for lending to commercial banks, it would help solve the issue.  
Rejecting the notion, Sadeqi said, “If CBI does that, banks will withdraw all their allotment [they are entitled to draw] on the first day.
“CBI has pushed private banks into the interbank market and currently they increase their capitals from that source.”
According to Sadeqi, CBI also considers other punitive measures for unruly banks, such as shutting these banks off Satna. Satna is the internationally known as Real Time Gross Settlement and is among online provisions launched by CBI in recent years.
Divandari had earlier said the current situation is a result of the unprofessional decision of the past administration, which obligated banks to offer cheap loans that were used to engage in other businesses.

Short URL : https://goo.gl/jnWTPw
  1. https://goo.gl/jW2GdX
  • https://goo.gl/xQDAgH
  • https://goo.gl/Em75Tc
  • https://goo.gl/PGYgC4
  • https://goo.gl/oPRQpJ

You can also read ...

President Rouhani Officially Inaugurates Tabriz 2018
A glittering ceremony attended by President Hassan Rouhani was...
Audi Recalling 1.16 Million Vehicles
Volkswagen AG’s luxury unit Audi said on Tuesday that it was...
E-Jing GT electric sports car concept
The Beijing International Automotive Exhibition is a barometer...
While Iran currently produces about 400,000 tons per year of aluminum, consumption is around 600,000 to 700,000 tons.
Iran is on track to launch a new aluminum smelter early next...
In its meeting on Tuesday, the Money and Credit Council, headed by CBI Governor Valiollah Seif, approved further cuts to interest rates levied on Housing Savings Account.
Iran's highest financial decision-making body has approved...
Pensions Account for Biggest Share of Treasury Payments
Payments to the Civil Servants Pension Organization accounted...
Bank Branches Shrink
Iranian banks have shrunk by 0.3% in the previous quarter...
A host of high-level officials, including several ministers, CBI Governor Valiollah Seif and two deputies of President Hassan Rouhani were present at the meeting on April 25. 
Iran’s First Vice President Es’haq Jahangiri on Wednesday...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus