CBI: 90% of national financing handled by banking system
The deputy of the Central Bank of Iran on Sunday announced that over 90% of the country's financing burden falls on the banking system, with 7,600 billion tomans (approx. $92.68 million USD) in facilities extended during the last Iranian calendar year (began March 20, 2023).
Speaking at the opening ceremony of the 17th International Financial Industries (Exchange, Bank & Insurance) Exhibition (Iran FINEX), Mohammad Shirijian referred to foreign currency and rial financing in recent years, saying that since economic development has not been prioritized in the country, growth has fallen short of the level of financing provided, IRNA reported.
"The country's economic strategy must be prioritized so that resources are allocated purposefully," said the deputy for Monetary Policy at the CBI.
Shirijian stated at the exhibition's opening ceremony, "Banking, insurance industry, and capital market players gather at this exhibition to have more interaction with each other and influence the country's financial and monetary industry."
"Today, the most important factor for the country's economic development and access to industry and sustainable development is undoubtedly the financial industry, in such a way that financing results in production and expenditures prevent the misdirection of financial resources. Unfortunately, however, we still fall short of this desirable situation, part of which requires fundamental and structural reforms," he said, ISNA reported.
Referring to the exhibition, which continues until Wednesday, he said: "Banking, insurance industry, and capital market players gather at this exhibition to have more interaction with each other and influence the country's financial and monetary industry."
The Central Bank deputy stated, "Over 90% of the country's financing is borne by the national banking system. If this financing lacks quality, it creates imbalances – effectively monetizing the country's financing needs, which directly impacts the Central Bank's balance sheet."
He emphasized, "Financing must be of high quality and finance the production chain. The Central Bank takes this matter seriously and, through specific certificate instruments for infrastructure projects, helps to target financing and its development."