The relationship between the government and the banks should be monitored
According to the Iran Economist, one of the serious challenges of the 13th government goes back to the discussion of the country’s banking system. According to many experts, the inefficiency of the banking system in the country has caused inflation and monetary and financial indiscipline in the government. The lack of a clear plan for credit creation, asset management, and revenue and expenditure has prompted the government to step in to address the situation.
عزیزنژادRegarding the actions of the 13th government in regulating the situation of the country’s banks, the expert on Iran’s economic issues said: “The wrong behaviors of the Central Bank are discussed.” Inefficiency In the assets and liabilities and money creation that the banks have created, these inefficiencies, due to their large size, have sometimes challenged the central bank. One of the good things the central bank has done is to require banks to keep their balance sheets from growing by an average of no more than 2 percent a month.
Following Fars’s conversation with Samad عزیزنژاد Read:
Fars: As the first question, what challenges do the country’s banks face in the current situation?
عزیزنژاد: The banking industry in our country is struggling with several challenges as a super challenge that the government’s priority should be focused on solving these challenges and planning to solve them quickly. The first challenge that banking is currently facing in Iran is the discussion of the institutional relationship between the government, the central bank and banks. That is, it must be clarified how the relationship of the whole country’s treasury with the central bank or the government’s relationship with state-owned banks is assigned, and basically how it is defined with the country’s banking system and what this relationship will be in the future. Once this relationship is defined, we must naturally enter the realm of banking reform. That is, first the government’s relationship with the central bank and the country’s banking system should be determined, then it should focus on structural and legal issues. For example, the task of the central bank law must be specified. Naturally, the parliament and the government must work together to bring this issue to an end in order to advance these software reforms in the country’s banking system.
* Reforming the balance sheets of state-owned banks should be a priority
Fars: You said that first the software sector of the banking system should be reformed, what is the next stage of this reform process?
عزیزنژاد: After the software reform phase of the banking system in the country, we must go to some hardware improvements in this area. This means that we must also pay attention to and reform the hardware part of state-owned banks. In this section, the first issue that needs to be reformed is the issue of reforming the balance sheets of state-owned banks.
* 2 basic problems of banks’ balance sheets
Fars: What do you mean by reforming the balance sheets of state-owned banks and what changes and corrections should occur in these balance sheets?
عزیزنژاد: Reforming the balance sheets of state-owned banks means making their financial statements more transparent. The reform of this part of the banking system in the government has begun. For example, the same thing that these banks say in publishing the list of debtors or better Super debtors They did, in this issue, the amendment of the statute is included. Or the publication of financial statements of state-owned banks in Kadal This goes back to the reform of the banking system. One is the imbalance of banks’ assets and liabilities, and what they want to do to address this. This program should be able to run both in the short term and in the medium term and in the long term. One is the issue of reforming the income and expenses structure of these banks. These two programs must be planned and implemented by banks in the short, medium and long term. This reform program should be finalized as soon as possible with the focus on the Ministry of Economy in the government, and according to this plan, the Deputy Minister of Banking. Economy Increase its supervision over state-owned banks and state-owned banks, and improve the implementation of this directive and Agenda Which is finalized in the government, to provide a coherent and regular report. Inside the banks, the inspection department will have continuous supervision over the correct and complete implementation of this program.
* The relationship between government and banks needs to be redefined
Fars: What is the government’s relationship with banks in the current situation, and basically what should this relationship be if it is properly defined?
عزیزنژاد: In the current situation, the government is a shareholder in state-owned banks, and on behalf of the government, the Ministry of Economy acts as the chairman of the assembly of these state-owned banks and makes decisions for them, and in the transferred or privatized banks. The government and the Ministry of Economy play the main role. This relationship must be redefined. For example, if the government wants to use the resources of banks and force them to pay facilities or support a part of the economy, there must be a specific program. For example, the slogan of the year is the discussion of knowledge-based employment-creating economy. To support knowledge-based businesses, it must be specified what banks should do. In any field that the government wants to implement a plan, in cooperation with state-owned banks and privatized state-owned banks, they must formulate a written plan for its realization in the coming years and the next four years. That is, it should be a clear roadmap so that both the central bank and the supervisory departments can monitor it, both quantitatively and qualitatively, and report to the community that the government, in its discussion of supporting knowledge-based employment, should implement this program. Have and are implementing it, and report every three months on the position of our banks in this policy.
* The government program for the banking system should be finalized in the first 6 months of the year
فارس: According According to the new approach of the government, which is transforming all sectors of the economy, especially the banking system, what should be the first transformation plan for banks?
عزیزنژاد: The first step of the government in this regard should be to write and implement the transformation plan of state-owned banks and private state-owned banks. Since the government has no role in the private banks in terms of equity and mainly the central bank has to supervise them and their actions, so they can not be expected to implement the government program. Most of our approach at this stage should be state-owned banks and state-owned private banks. The first step is to prepare a written plan for the banks and each bank can have a specific plan. This is also because some of our banks are commercial or some are specialized and some are commercially privatized. Each of these types of banks wants a specific program. This program should be in topics such as asset and debt management, income and expense management and empowerment of banks through capital adequacy and other issues. This program should be prepared and finalized immediately in the first half of this year and communicated to the banks for implementation.
* The program of the banking system in the government should be finalized
Fars: In order to be able to implement the government’s transformation plan, what reforms should the banking system have in its approach?
عزیزنژاد: The first point is that all bank managers must be in line with the thirteenth government and its transformational approach. Managers have accepted responsibility provided they implement the government’s program. But in order for the program to be feasible, it must be proposed to the government from within the banks so that it is both easy to implement and accountable in implementation. For this reason, bank managers must be pioneers and propose their specific bank program to the Deputy Minister of Economy of the Ministry of Economy with serious will and effort. For example, for 1401, they say what they want to do in order to fulfill the orders of the Supreme Leader and the slogan of the year and the slogan that the thirteenth government gave to the people and society. This program should be finalized in the government and then bank managers are comfortable with the approved program in End They must report on performance and be accountable to the program. In such circumstances, the country’s banking system will not be confused and different and contradictory tasks. So the first step is for the banks to take the step of preparing a roadmap for 1401 and even 1404, or at least 1402, to say what they want to do. What is their situation and should they clarify their situation and announce where they want to go and what steps they want to take to reach the desired point. This should be done in the government and especially in the banking deputy of the Ministry of Economy, and adequate supervision should be done in accordance with that program.
* Our banking laws are far removed from banking in the world
Fars: In order to get to the point you are saying, do we need a legal package from the parliament and the government to change the banking system? Or can we achieve these goals with programs written at different intervals?
عزیزنژاد: For the short-term plan, there does not seem to be a need to enter parliament. The parliament should focus more on projects such as the Central Bank Law and the Banking Law and finalize it, in which case it can make a significant contribution to this debate. Because our laws are a little bit different from the current world laws in the field of banking, and the parliament can do the most help there. But the government itself can provide the initial regulatory and executive framework, which is a general framework, in consultation with the banks, and then the executive framework is written by the banks and submitted to the government for finalization. That is, the framework provided by the government should be general and, as a directive, require banks to write an executive plan and submit it to the government. This executive plan must be in line with the goals pursued by the government. But the specific executive plan of each bank must go to the government from within the banks and be finalized in the government. Within the cabinet, of course, the cooperation between the Ministry of Economy and the Central Bank is very important Increase And to move in harmony and to observe the principles of standard banking and banking, which are in line with the current conditions of the world and the conditions of the Islamic economy, and to help government programs to increase social capital and public satisfaction.
* Central Bank to define new regulatory indicators
Fars: How is the role of the central bank defined in this transformation program that needs to be implemented?
عزیزنژاد: The central bank, which is the supervisor of the banks, and if the Ministry of Economy also wants to monitor the banks in order to achieve those regulatory indicators, must be through the central bank, and this bank must be more involved in this field. The Central Bank has several directives in the field of banking activities and supervision. The government and the Ministry of Economy, on behalf of the government, can greatly assist the central bank in implementing these directives. That is, the government must oblige state-owned banks and transferred governments to comply with central bank directives. In discussing its supervision, the central bank should move more towards online and electronic supervision and create a comprehensive and integrated banking system in such a way that, based on specific standards, certain functions and indicators in terms of banking health and efficiency of the banking network. Follow. Risk indicators, capital adequacy ratios and the ratio of fixed assets to total surplus assets and assets should be formulated, implemented and monitored. The tasks that the laws have created for the banking system and have obliged the banks to implement, should be accompanied by more supervision whether they are fulfilled and if the reasons are not fulfilled, they should ask the banks for it and if the banks need to They have help, go to this help. Where banks violate, be transparent and where necessary, the Ministry of Economy should help the central bank to achieve these goals. But this should not cause the Ministry of Economy to sit idle. Rather, the Ministry of Economy should monitor all existing directives and laws, and oblige state-owned banks and government representatives in the banks to implement these directives and laws and submit turn-based reports to the central bank. So the main focus should be with the central bank and the Ministry of Economy should help through the banking deputy
* The central bank has stopped the growth of banks’ balance sheets
Fars: In previous years, the Central Bank disrupted part of the banking system in various ways. What effect does this have on Inefficiency Has the banking system?
عزیزنژاد: Central Bank misbehaviors to discuss Inefficiency In the assets and liabilities and money creation that the banks have created, these inefficiencies have sometimes challenged the central bank because of their large size. One of the good things the central bank has done is to require banks to keep their balance sheets from growing by an average of no more than 2 percent a month. If it monitors this issue and leads the banks to have monetary discipline within a certain period of time, it can be effective in controlling liquidity and inflation and encourage banks that are good. It can increase this ratio for them and punish the banks that do not have good monetary discipline and have bad management and reduce this ratio.
Fars: Thanks for your explanation
end of Message/