Economy, Business And Markets

Plans to Revise Banking System

Plans to Revise Banking SystemPlans to Revise Banking System

Deputy economy minister Mohammad Parizi unveiled the government’s main plans for revising the banking system during a specialized meeting held last Thursday to assess the performance of Tejarat Bank in the field of the Resistance Economy – a set of guidelines carved out by Iran’s Leader to lessen the impact of US-led sanctions and stimulate economic growth.

The plans, according to Parizi, include strengthening the supervisory foundation and structure; changing the operational structures and functions; making institutional and structural changes in the banking system; and core banking implementation.

Core banking is a service provided by a group of networked bank branches where customers may access their bank accounts and perform basic transactions from any of the member branches.

With regards to the current condition of the economy, Parizi said it is necessary to reconstruct the financial system as soon as possible, however he said that the complexities of the Iranian financial system need to be taken into account when doing so.

“Revising the banking system is a national demand,” he said, adding that the plans are being considered by high level decision makers.

The aim of holding meetings of this kind, according to Parizi, is helping to devise a roadmap for different parts of the economy in a bid to move towards the Resistance Economy.

 Declining Oil Revenues

The adverse effects of sanctions combined with falling oil prices will undoubtedly influence the revenues of the country, said the secretary of the Expediency Council in the meeting.

Mohsen Rezaee, economist and politician said “even if the sanctions are totally lifted, the country’s revenues will still be below expectations.”

Thus, the Expediency Council secretary concluded that if Iran is to safely pass through this stage, it will need to implement the Resistance Economy, as instructed by the Leader.

“This will help minimize the damages incurred by sanctions imposed on the country and smaller oil revenues,” he said.

The Resistance Economy, said Rezaee, is not about making people suffer, “it is a plan that gives the country a new lease of life by turning the threats into opportunities while the economy is under pressure.”

He also suggested that by establishing financial consulting firms, small and medium sized enterprises (SMEs) would have access to financial resources previously denied to them.