Fundamental reforms in the banking system are the main agenda of the central bank

Ali Salehabadi in the second session of periodic consultations with experts and professors of economics, referring to the sides of fundamental reforms in banking, said: the government’s relationship with the central bank, the central bank with banks and banks with the people need fundamental reforms that are on the agenda of the central bank. The route will definitely benefit from the opinions of economic experts.

Referring to the government’s relationship with the central bank, he said: “The government’s relationship with the central bank has been defined in various issues, including wages, the purchase of foreign exchange from oil exports and the government being a banker, and reforms are needed for an optimal relationship.”

The head of the Monetary and Credit Council also clarified about the central bank’s relationship with banks: “One of the most important relations between the central bank and banks is in the field of bank imbalances in the form of overdrafts. We are a serious supervisor.

Salehabadi stated that the bank is an intermediary of funds and has no right to do business, noting that while risk management in the banking network is also very important; The fact that a bank traps its liquidity in one or more specific projects and that project does not have the necessary liquidity, the bank faces a problem and eventually borrows from the central bank.

He said that banks should keep some of their assets in cash or quasi-cash, which has been raised in recent years in government bonds. Repo it in open market operations so as not to suffer from liquidity problems.

The Governor of the Central Bank, in discussing the relationship between banks and the people, addressed religious issues and contracts and said: “In this regard, there are many important issues, an example of which is bank contracts based on jurisprudential and Islamic principles.”

According to the report, economic experts in this meeting explained and analyzed the issues, the common role of central banks in the world to create economic stability and not be directly involved in economic growth, requirements and strategies for non-inflationary financing of budget deficits and credit to productive sectors. They presented their proposed solutions.