Baku, Azerbaijan, June 8
By Khalid Kazimov - Trend:
Central Bank of Iran is studying a plan on liquidation and merging a number of banks aimed at restructuring the country's banking system.
Akbar Komijani, deputy governor of Central Bank of Iran, has said that liquidation and merging of banks and credit institutions is on the agenda, Mehr news agency reported.
He however did not say which banks will be emerged.
The officials of the Central Bank are concerned over the increasing number of private banks and credit institutions in the country, the report said.
According to the report, Central Bank of Iran seeks to reduce the number of banks in the country and it has not issued any permission for establishing new banks in the country in recent years.
The research center of the Iranian parliament released a report June 7 suggesting that most of the banks in the country are on the verge of bankruptcy.
During his mid-May visit to Iran, First Deputy Managing Director of the International Monetary Fund (IMF) David Lipton called for restructuring the country's banking system - both at its operational level and its high level of nonperforming loans - to help lower real interest rates and stimulate credit to the economy.
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