New central bank programs in the field of banking supervision

Mohammad Nadali, Director General of Monetary and Credit Operations of the Central Bank, referring to the President’s three tasks for the Central Bank, said: We are following them seriously by the order of the President.

He added: “In this regard, the Central Bank Board of Directors quickly convened a meeting and coordination was established between different departments of the bank, which of course had a history in the Central Bank, but the previous methods were to be pathological and we can plan in these three areas.” Pursue more transparent and accurate operations while informing the public.

Nadali stated: At present, the increasing coefficient of liquidity or the power to create liquidity by banks is about 7.9; That is, each currency that leaves the central bank in the banking network becomes 7.9 times.

According to him, the central bank all over the world uses tools that can limit the power of banks to create money, so that the money that is created in the banking network is directed to productive activities.

The Director General of Monetary and Credit Operations of the Central Bank, referring to the tools, methods and regulations that the Central Bank uses to limit the creation of liquidity, said: One of these tools is the increasing coefficient of liquidity that the Central Bank takes through legal deposits from banks. Controls. In order to slow down the facility and deposit cycle and limit the banks ‘creative power, at each stage of the banks’ deposit, it obliges them to keep a percentage as legal deposit with the central bank, which is currently between 10 and 13. Percentage among our banks.

Nadali continued: “Another method is that the central bank has announced the liquidity coverage index to the banks that it should keep a percentage of its assets in cash or assets that have high liquidity in the portfolio.” This helps banks to lend less in some way.

Referring to the capital adequacy index, he clarified: When banks want to comply with this index, they have to behave in a way that they observe the capital adequacy ratio in the process of granting facilities and investing and buying assets. In these areas, the necessary regulations have been communicated to the banking network and we do not have a gap, but we must have more programs in the supervisory dimension.

The Director General of Money and Credit Operations of the Central Bank said: “The world used tools in the field of information technology to improve the way banks are monitored, and instead of face-to-face supervision, they have face-to-face supervision.” they do. We also started this process but we are still behind the world. As for the facility section of the Samat system, each facility is registered with the recipient’s national code.

Nadali also stated in another part of his speech: The Central Bank has a new planning in the field of supervision in order to be able to have more effective supervision in the field of banking supervision by using tools and sites and information technology knowledge.

He added: “In order to have more control over the creation of banks ‘money, we monitor the monthly growth of banks’ balance sheets, and any bank that does not comply with this issue will increase its legal deposit, ie the amount of people it has created through the money it has created.” We take it and absorb it. Of course, the important point is that if this liquidity is directed to the productive sector, we will not face a challenge, but if it moves to the non-productive sectors, we will not only face a challenge, but inflation will increase.