Banking profit rates not to reduce this year; CBI official tells ILNA
Top Central Bank Official says, Banking profit rates are not going to reduce in this year.
"Kamran Nadri", Central Bank of Iran’s Monetary and Banking Research Institute, regarding the likelihood of Banking profit rates’ reduction, stated that there are possibility of reducing banking profit rates by ordering rules, but in fact the probability of such cut is low.
According to Nadri, due to the extension of banks’ problems and their facing money supply deficit, the institute has suggested to continue their price competition and provide higher profit rates for attracting more resources.
Top central bank official also pointed to inflation rates and told that the rates are going to be higher than preceding year.
"Cutting banking profit rates in such situation would be problematic" he emphasized.
Banking researcher also added that if the process of reducing profit rates continues this way, the banks would face budget deficits.
"Financial budget deficit, should either be covered by central bank or the banks themselves should boost deposit rates, in order to keep the stakeholders" he noted.
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