Saleh Abadi’s seven commandments to bank CEOs
The Governor General of the Central Bank emphasized on conducting intelligent supervision on the performance of banks in the new year, seven important decrees in order to support the growth of production, facilitate bank guarantees in granting micro-facilities to the people.
It issued sustainable job creation, practical support for the knowledge-based economy and strict compliance with the monetary rules contained in the banking system transformation program.
07 April, 1401 Sunday
Dr. Ali Saleh Abadi said in the Nowrozi meeting with bank CEOs: The Central Bank will expand its intelligent supervision within the framework of the comprehensive program of transformation and reform of the country’s banking network. For this purpose, banks must:
– Put your financial discipline and credit health on the agenda.
– Facilitate the granting of banking facilities to the people by complying with strict validation and easier documents.
– To grant bank facilities in a targeted and correct manner to different production sectors.
– Stop allocating credits and bank facilities to non-productive sectors.
– Carry out the necessary care in the field of controlling some balance sheets of banks accurately.
– Put cash management seriously on the agenda and implement smart monitoring of facility consumption.
Banks’ overdraft from the Central Bank is also prohibited according to the Budget Law 1401, except by depositing valid documents.
The head of the Money and Credit Council stated that banks could previously deposit gold, bonds and currency as collateral with the Central Bank, and added: This year, other items have been added to these collaterals, and soon the instructions will be ready to be sent. . In this situation, the Central Bank can sell these securities in case of non-fulfillment of the obligations of the banks in a system.
Dr. Saleh Abadi also emphasized the necessity of operationalizing the reform of the banking system and said: reforming the banking system in three areas: the relationship between the government and the central bank and the banks, the relationship between the banks and the central bank, and the relationship between the banks and the customers is one of the requirements of this year, and this year, the process will definitely take place. Reform and transformation in these three relationships must happen in order to witness transformation in the banking system.
Referring to the launch of money market funds this year, the Governor General of the Central Bank added: Money market funds can purchase instruments with a maturity of less than one year, according to this, in 1401, banks will also use a specific and coordinated mechanism with The stock exchange organization can establish these funds in the capital market.
Dr. Saleh Abadi further stated: In addition to money market funds, which will soon be on the agenda, banks can also issue short-term bonds of less than one year over-the-counter to manage their liquidity with the coordination of the Central Bank. Banks issue certificates of deposit based on the permission of the central bank. This certificate of deposit is tax-free and can be traded in the capital market at the market rate.
This post is written by shadmanamini