Banks should not be involved in financing business activities

According to Monetary Financial News Workers’ Welfare Bank, Seyed Ehsan Khandouzi, Minister of Economic Affairs and Finance in the ceremony of honoring and introducing the former and new CEOs of Bank Melli Iran, pointing out that despite the efforts being made to move bank-based financing to market-based financing, but in Predictable outlook, the banking system will continue to be the basis of financing in the Iranian economy, he said: “If we are worried about the financing system, we must prioritize banking reforms.”
According to Shada Khandouzi, he continued his speech by pointing out his expectations from the country’s banking network and stated: “Banks, in addition to observing public and social responsibilities, are moving towards an economical, profitable and profitable banking operation on their agenda.” Because if banks continue to face accumulated deficits and losses, sustainable development, which should be stable based on the banking system, will not occur.
The Minister of Economy expressed his other expectation from the banking network for the growth of foreign exchange operations and added: in order to be actively influential in untying the country’s trade balance, it is expected that everything the banks can do to increase the volume of foreign exchange operations. And I believe that with serious determination, we will see great leaps in this field in the next one or two years.
The Minister of Economy then referred to the issue of leaving unnecessary business and clarified: The strategy of the Ministry of Economy is not to leave any kind of economic activity and business, but to leave businesses that do not really have a place in the main business of banks.
He stressed: “Where there are no major players in the economy, banks can certainly act as leaders and breakers, but in general we need an exit strategy to be able to enter newer investments.”
The Minister of Economy also stated that the issue of directing credit to productive sectors and banning non-productive activities is the lowest that can be expected from banks. Part of the financing of business in the Iranian economy should not be done with the support of banks, especially state-owned banks.
The Minister of Economy considered the replacement of the accreditation system instead of the collateral system as an important issue and called it one of the other programs of the Ministry of Economy in the field of transformation in the country’s banking system and said: This issue is one of the most beneficial It is the most successful move of state-owned banks, and we are trying to fully establish the credit rating system, because with the implementation of this transformation, banking in the country will take a different form and we will experience another system of banking.
The Minister of Economy added: “Of course, this important thing depends on the support of the country’s economic information systems for the accreditation of banks.”
In another part of his speech, Khandouzi mentioned the observance of the approvals of the Monetary and Credit Council by the banks and the youthfulness in the banking system, especially at the managerial level, as his other expectations.
The Minister of Economy continued to raise transparency in all aspects, especially the basic rights of activists and customers of banks and said: “This issue has been emphasized many times in the regulations of the Central Bank, but many people and economic activists are not aware of their basic rights or their hands somewhere.” Does not reach.
Dr. Khandouzi emphasized: The banking system should try to show a different image by changing its behavior and approach in the coming years, so that in this image it is with the people and producers and shares the concerns of economic activists and households. .
The Minister of Economy also emphasized on preventing the closure of production units and continued his speech by pointing to the issue of profits and losses of companies under the banks and said: To cover its losses, it has moved away from the banking business and needs to be corrected.
He added: “Among these changes are reforms in the systems of economic and corporate governance in these companies and it must be accepted that these companies can not be managed in the past and we must try to be active and with intelligent planning and Purposefully manage the subsidiary of state-owned banks, and in this regard, it is necessary to change the management method, and the basis of that is the change in the method of appointing the CEO and the board of directors of banks.
The Minister of Economy further emphasized: The Ministry of Economy will seriously try to put the evaluation system based on merit selection on its agenda in order to provide the ground for the benefit of elites and specialists who have the least managerial ability and financial health.
In this ceremony, Khandouzi called Bank Melli a symbol of the banking system and stated that this bank is considered as one of the most effective, progressive and popular banks in various indicators and has a special position, while the body of the servant with its roots is a heavy burden. They are responsible for providing services to the community.
At the end of his speech, the Minister of Economy introduced Mohammad Reza Farzin, the new CEO of Bank Melli, as a person with a background in banking and economic management, and praised the efforts of Hosseinzadeh, the former CEO of Bank Melli.