Banks are classified in the form of specialized activities

According to Iran Economist From the Central Bank, Mohammad Reza Farzin, in a joint meeting with bank CEOs, pointed out the advantages of bank specialization: every bank cannot have every activity, and development, commercial and loan banks must be active in the defined field of specialized activity. and even some comprehensive banks that exist must be active in each of these areas based on specific and separated contracts.

Referring to the most important reforms in the banking system, he said to the CEOs of the banks, “The managers of the banking network must help the Central Bank to implement this reform program to discuss imbalances, strengthen efficiency and strengthen the direction of deposits towards specific activities in the system. Banking will be implemented and laws and regulations will help in this field.

The Governor General of the Central Bank called the problem of banks’ inconsistency as one of the important issues of the banking network and the serious agenda of the Central Bank and said: the supervision area of ​​the Central Bank is pursuing the resolution of the inconsistencies with written programs and methods, and on the other hand, the problem of adequacy The capital of some banks is also on the reform agenda.

Emphasizing the strengthening of various aspects of supervision in the banking network, Farzin said: supervisory layers must be formed within banks and the supervision of banks should start from the era of banks. In other words, all the elements of every bank must have active supervision and each member of the board of directors must have a supervisory duty and be accountable to the central bank.

The business activity of commercial banks is not acceptable

The Governor General of the Central Bank mentioned the issue of bank management as one of the other problems of the banking network and added: In this context, a single version cannot be prescribed for all banks and conditions should be defined for each bank according to its field of work. At the same time, the business activity of commercial banks is not acceptable and they should exit from business by selling the companies.
He considered the Central Bank as the representative of protecting the rights of depositors in the banking network and said: In addition to monitoring the banks, the Central Bank should also be aware of the process of events that happen in the companies affiliated to the banks, because the companies Banks are created with people’s deposits and this money belongs to the people.
The Governor General of the Central Bank added: supervising the appointment of managers and board members of the companies belonging to the banks and determining the limits for the number of companies under each company, as well as the accountability of the managers and board members of these companies in the committee Corporate governance is one of the other issues that must be taken into consideration by the supervision department in the discussion of bank governance.

Strict monitoring of the use of bank credits
In the continuation of this meeting, Dr. Farzin considered the monitoring of the use of credits as one of the other priorities of the banks’ monitoring of the recipients of the facilities and added: there is currently no consistent monitoring of the use of the banks’ credits, so that in some cases the received facilities are spent on things other than the purpose of the facilities. and the supervision should be such that the money is spent in the activity for which the facility is received.
The head of the central bank also pointed to the growth statistics of the economic sectors in the first quarter of this year and said: the growth of the economic sectors in the spring of this year was a good growth, so that the growth of the housing sector, which was negative 8% in the spring of last year, turned positive this year. It reached 2 percent, which shows that the housing production situation has improved this year.
Stating that the growth rate reached 4 percent last year, Farzin said: This growth rate was equivalent to the growth rate of the previous two years, and this shows that higher fuel is needed to achieve a higher growth rate, and this requires investment. In addition to bank sources, foreign investment and other methods of financing in the capital market should also be considered.
The Governor General of the Central Bank announced that the economic growth rate without oil in the first quarter of this year was 5.2% and with oil was 6.2% and added: The oil sector had a growth rate of about 16.5% during this period, which is a very good situation. It was and it is expected that the same situation will continue in the summer as regards oil, which is effective on the growth process.
He expressed hope that economic growth will be in good conditions in the summer season because the industry, service and agriculture sectors were in good condition in the summer.
Farzin added: Last year, due to the good currency situation, the growth rate of capital formation was positive for the first time, and this led to the continued growth of economic sectors, and this year, the growth rate of capital formation will be positive.
The Governor of the Central Bank said: The banking network should try to help capital formation by strengthening financing, because this is important for realizing the future growth rate and the growth rate will remain positive.