Average bank profit rate is 18.9; central bank economic deputy

Regarding bank profit rates (bank rates), “Peyman Ghorbani”, Iranian central bank economic deputy told that in the previous year, the rate has been modified several times and the incident was proportionate with the changes in the inflation rates and general condition of the country.

Stressing the need for central bank policy making and supervision on the situation of profit rates he said: “What has happened is that during the past 3 years, inflation rates have changed and the banking system also tried to decrease profit rates. In this regard the “money and credit council” and the central bank, with their suggestions have been tried to decrease profit rates in several stages.”

“As a result, in comparison with the preliminary conditions, the rates have been decreased and the degree of profit rates observance, from the bank has been improved. Although, there maybe some breaches which has to be attended to.” he added.

Central Bank’s economic deputy said that problems associated with banking profit not limited to inflation and banking system conditions and the status of financial institutions have to be considered.

“Due to the conditions that we had, it seems that the act of keeping the current rates is appropriate. In the future whenever it was necessary we would start studying the case.” he added.

He also emphasized that currently the average banking profit is 18.9 and the so called 26 percent rate is not true.