TEHRAN, Iran, Nov.3
Trend:
The Monetary and Credit Council has approved the Central Bank of Iran (CBI) suggested policy for controlling the growth of the banking network's balance sheet.
The Central Bank of Iran would implement the policy to control the balance sheet with a priority of assets and foreign assets alongside other monitoring policies, the CBI announced in a statement, Trend reports citing Mehr News Agency.
The controlling policy would include limitations for cash flow, savings at the Central Bank of Iran, the government debt securities, the client's commitment for validity certificate, and credit for productivity.
The Central Bank of Iran can downsize the growth of banks and credit institutes balance sheet based on the financial situation and their function. Therefore banks with unsuitable conditions would be more limited and banks with more suitable situations would have fewer limitations.
The Governor of the Central Bank of Iran has recently announced that the CBI would use alternative policies for an increase in the interest rate in order to reduce inflation pressure in markets.