3% of liquidity is at the disposal of banks and foundations

Referring to the performance of private banks in Iran, Hossein Raghfar said: “Private banks have become the cancerous gland of the country’s economy, and regardless of who and what government is in charge, the Central Bank has always tried to strengthen these cancerous complexes.”

“Banks need serious surgery,” he said. “Private banks impose terrible costs on society.” While the main function of a bank in a country is to equip the micro resources of the people and direct them to production, but banks in Iran have equipped the resources of the people and engaged in trading activities and importing luxury goods, buying and selling housing and business and the same companies owned by banks , Is a private life for unruly payments to individuals.

The economist continued: “Many people who are on the board of directors of banks receive extra-salary salaries, which they have no right to receive this amount of salary and these amounts.”

Raghfar stated that the banking activities of the private sector in Iran are inefficient and only impose inefficiency on the country’s economy, adding: “Banks are trying to increase bank interest rates, which will directly increase production costs and in Ultimately, producers are forced to sell their production units and invest in speculative and brokerage markets, because in today’s Iranian economy, the profit from buying and selling land, coins, currency, etc. is higher than production.

He said: “Currently, production costs have increased so much that these activities are no longer economical and economically justified, and banks, especially private banks, are responsible for this situation.”

The economist said that part of the banks’ interest is spent on running the banks themselves, adding that the banks are facing very high inefficiencies and that is why the cost of running the banks has increased. Hence, they seek to increase interest rates, while increasing production requires lower interest rates. Unfortunately, we see that in such a situation, the banks’ words sit on a chair, because the central bank has always been at the service of these people and not at the service of production and the people.

He stressed: “In Iran, the activity of banks is to equip and strengthen unproductive activities and always seek to increase interest rates on deposits so that people can invest their resources in banks, while this contradiction is obvious.” Banks, on the other hand, raise costs and create inflation, but the interest rate they charge on deposits is much lower than the inflation rate they generate, in other words, it is the people in the deposit sector who pay interest on the banks.

Referring to the issue of controlling the performance of banks, especially private banks, Raghfar said: “There is no monitoring of the problematic and contradictory performance of banks.” In this situation, it seems that the banks have received the green light from the central bank and the government to take such actions and actions, otherwise these actions are completely controllable and manageable. The central bank must stop the banks that were the source of the big corruption and merge with other banks.

He continued: “Many banks have become a forum for certain groups to benefit from the interests of the board, unaware that they increase the cost of living in society and increase the inefficiency of the country, and the people have to pay for this inefficiency.”

Emphasizing that a significant part of the country’s liquidity is at the disposal of banks, the economist said: “Up to 70% of the country’s liquidity is in the hands of banks and foundations.” Therefore, for today’s stock market or other markets, people should not be blamed for causing inflammation in the markets by increasing micro-demand.

Raghfar added: “It is true that interest rates should be higher than inflation, because otherwise what is the reason for people to keep their money with banks, but the point is that banks should invest these resources in other activities.” In the current situation, the government and the government pay for the inefficiency of the banking system from the pockets of the people.

Emphasizing that there is basically no need for this number of banks in the country, he said: “Credit funds are also connected to people in power and with the current unhealthy structure, they should be dissolved and return people’s resources, and all activities should be done through official banks.” To take. I believe that reducing the number of official banks is also necessary for the central bank to be able to properly monitor and deal with the wrong banks.

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