Deregulation is needed for commercial lenders so that they can invest in the economy, said a top banking expert to IRNA.
“Investment by banks should become more liquid so as to help lift the country out of recession and further curb inflation,” said Mohammad Qojavand.
Banks should be able to invest and run businesses freely, but with some limits on timing. For small investments lenders should be given a three year time frame to offload their investment position, and five years for larger investments, suggested the expert.
Banks should easily be able to invest in various businesses and then sell them when they reach profitability, added the expert.
“This way, new employment opportunities are created and lender’s money will be used more efficiently,” said Qojavand. “This will also reduce bank liabilities and increase viable investments for the lenders.”
