Challenges in Iranian banking policies
Challenges in Iranian banking policies
Keywords:
Banking policy; Government; Liquidity; Inflation; Unorganized monetary marketsAbstract
Due to the prevalence of COVID-19 in Iran and international sanctions, banks are facing problems and challenges such as changes in liquidity and bank interest, decisions on the level of fines and fluctuations in the quality of facilities. In Iran, mostly, the high gap between liquidity and economic growth causes inflation and rising prices. Most banks engage in speculative activities through their subsidiaries, disrupting markets such as currency, coins, and housing. In this regard, the approvals of the Central Bank are part of the governing laws and banks are obliged to comply with them.
In this descriptive-analytical article, it was concluded that in liquidity control policy, the following factors can contribute to the positive trend of the country's macro-economy: controlling the financial stability of the Iranian government with non-oil revenues and proper monitoring of oil revenues and observing debt repayment by seigniorage revenues and proper supervision, regulation of foreign exchange market and organized non-monetary market, management of quantity and quality of liquidity, managing stability of monetary laws, management of production activities, launching various systems for prosperity of different business areas and entrepreneurship, the development of technology in the banking system, the provision of useful and timely economic and production statistics, and the resolution of structural problems and challenges arising from sanctions and COVID-19 (especially Trump's presidency, which increased liquidity).
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