154% increase in the capital adequacy of the Housing Bank during the last 2 years

Seyed Mohsen Fazelian, a member of the Board of Directors of Maskan Bank, in describing the annual performance of Maskan Bank, informed about the growing trend and improvement of the financial situation and performance of the bank during the last 2 years.

The member of the board of directors of Maskan Bank stated that capital adequacy is one of the ratios for measuring the health, performance and financial stability of banks and financial institutions. Equal to unexpected losses as well as support for depositors and creditors.

He informed about the upward trend of the mentioned ratio during the last 2 years in Maskan Bank and stated: the capital adequacy of the bank at the end of 1998 was 0.4 percent and at the end of 1999 it was 74.8 percent and this ratio is fortunately at the end Azar 1400 has reached 22.10 percent, which has been due to the increase in the bank’s capital in previous years and in terms of capital in the capital after receiving a license from the Central Bank and also assigning part of the foreign exchange claims.

Explaining another reason for this 154% growth, Fazelian pointed out: During 1399, after several years, the Housing Bank determined the task and corrected the method and rate of calculating interest and commitment amount of about 8 thousand billion Rials from foreign currency claims and financial effects. In addition to the return of 8,000 billion rials of accrued reserves from previous years to the accumulated profit and loss account, these reforms reduced the remaining 8,000 billion rials of foreign exchange receivables and created transparency in financial statements, which in addition to the small effects of these reforms Financial, the qualitative effects of this decision led to the opinion of the independent auditor and the removal of one of the audit clauses in 1398.

In the final part of his remarks, a member of the board of directors of Maskan Bank said: “Capital adequacy is one of the most important criteria for assessing the financial condition of a bank and banks, due to their characteristics, should have sufficient capital to cover the risk of their activities.” Therefore, the capital adequacy ratio index is one of the most important drivers in the profitability process of financial institutions and banks.