Private banks cause disruption in the monetary system of the country

The establishment of private banks in the last 20 years with the ownership and management of domestic non-governmental entities and based on the rules and with the licenses of the Central Bank were recognized.

These banks, which have been created without regulation and continue their destructive activities, have always been criticized by experts in these years, and the latest protest and criticism is related to the Minister of Economy and in the meeting of the administrative council of Zarand and Kohbanan cities.

In these years, private banks caused the reaction of the Minister of Economy by not paying facilities and fees in the gold, housing and currency markets and disrupting the country’s monetary system.

Seyyed Ehsan Khandozi, referring to the problems caused by banks, said that we expect private banks, which are part of the body of this country, to satisfy people with their services, not to complain, and to help in the implementation of projects.

Non-adherence of private banks to the implementation of interest rates

“Hossein Mirzaei”, an economic expert, said in this regard: “The issue of non-adherence of interest rates by private banks is one of the aspects of the inappropriate performance of these institutions in the economy of the country, and perhaps other functions are worse than this issue of non-adherence to interest rates and have more destructive effects.” have in the economy.

He added: When we check the macro statistics of the monetary base in the country, we see that in the 90s and in recent years, a pillar of the banks’ debt is to the central bank, and based on these statistics, more than half of the banks’ debt and perhaps 60% are related to private banks. .

Inflation measures of private banks

Mirzaei clarified: The debt of private banks to the central bank has fueled liquidity and inflation, and has shown its effect on the weakening of people’s livelihoods and the frequent increase in the price of goods in the economy, and it shows the financial indiscipline that banks had.

He said: The next important axis in the performance of the banks is that the resources they attract are partly facilitated and spent in different areas, and partly they are not facilitated and are kept in cash, or whether they use part of the resources attracted in the asset market, such as They circulate gold, coins, housing, and currency, which is itself inflationary and creates high prices.

This economic expert stated: Statistical data analysis shows that 60 to 70 percent of the unpaid facilities of the banking network are related to private banks, which means that these banks attracted resources from the financial sector and instead of providing facilities in line with the country’s overall goals. circulate in different markets and have caused price confusion in the markets.

He stated: Another problem that private banks created is related to the interbank market, when we refer to it, the main banks that collect market funds and fuel the fire of interbank interest rate increase are private banks and have a high share in the field. They demand facilities in the interbank market.

Mirzaei continued: Therefore, we are facing a phenomenon that in every sector it enters, it tries to collect funds with high interest rates, repeated borrowing from the central bank, and finally spends in an unknown sector, and this action affects the country’s economic situation. .

He also said about the way to deal with private banks: some private banks have not yet reached the limit of serious warning and the central bank can deal with the existing tools and powers it has and make maximum use of its supervisory tools.

This expert continued: The central bank has the ability to deal with these banks, and some of these banks are past the discussion of reform and their trend in recent years is such that they are not included in the field of banking reforms.

He emphasized: Of course, private banks are in a good situation, maybe the financial statements are worrying, but in fact, the total assets of banks are valuable items, and therefore some banks need to make tougher decisions and mergers with large state banks should be on the agenda. We were the merger of military banks in the country.