The banking strategy package is a measure of banks
According to the Iran Economist, the 13th government has been emphasizing on reforming the banking system since the beginning of its activity in September last year, and the most important step in this regard was to publish the list of bank super-debtors, which was done without any consideration.
Another important action of the Ministry of Economy in recent days is the development of a package of banking strategies and policies, which was unveiled on May 30 by the Minister of Economic Affairs and Finance in the presence of 13 state-owned banks.
This package was unveiled in order to achieve the country’s economic goals and correct the problems of banks and improve services to the people and economic activists; An issue that has been neglected in the last decade and in the previous government.
The most important orders and tasks in the banking sector policies and strategies package can be the sale of non-bank shares and surplus real estate, the ban on investment in gold, coins, real estate by the bank, the collection of branches, a 20% increase in foreign exchange by the end of this year. Withdraw from loss-making operations, grant loans up to 200 million Tomans in absentia, collect receivables, publish debtors’ information in each chapter, and prohibit granting facilities without accreditation.
“Mohammad Ali Khadem,” an economist, told the Iran Economist about the package: “Having political leadership is an important issue for banks, and the Ministry of Economy, because it manages 70% of the banking system, prepared this package.”
He added: “In the strategic package, efforts have been made to determine indicators for banks in order to be in line with the objectives of controlling inflation and strengthening economic growth.”
The economist explained the details of the package: The most important issue of the policy package is paragraph 25. In this section, all banks under the Ministry of Economy are required to publish quarterly financial reports, although banks that are listed on the stock exchange always publish their financial reports on a quarterly basis.
He added: “The banks in which the government is a shareholder did not have good order in publishing their financial reports, and this clause obliges them to publish their financial reports regularly, and as a result, provides a measure to the public to review the banks’ actions in different seasons.” In fact, the purpose of Article 53 is transparency and information to the people.
Khadem, stating that paragraph 23 is another important clause in banking policy strategies, said: “According to this paragraph, banks were obliged to provide the Central Bank with information on the facilities of related persons, and of course, the Central Bank has already issued regulations in this regard.” But the banks were not committed to its implementation.
He continued: the implementation of this clause in justice is effective in granting facilities because banks are not allowed to pay a large part of their facilities to companies and subsidiaries.
The economist added: “This measure is effective in controlling the growth of inflation and strengthening economic growth, and directs credit to the industries that are the driving force for the country’s economy, and if the banks violate this, a review should be done in this regard.”
He said: “It may be difficult for some banks to implement all the clauses of the strategic package, but it is trying to draw the desired situation.”
Khadem said: “Regardless of the content of the strategic package of the banks and some of the shortcomings that they point out, it provides the people with a tool to evaluate the banks based on it.”
Regarding the formulation and implementation of a strategic package for private banks, he said: “This issue should be done by the central bank to lead the overall management of the banking system.”