Forceful Measures to Tame Unruly Banks

November 21, 2021
banking

T he Central Bank of Iran has announced tougher restrictions on underperforming banks as part of measures to “control money issuance” by banks.

It increased reserve requirements of five banks by 13% because they “didn’t abide by the rules governing their balance sheets,” the semi-official Fars News Agency quoted an informed source at the CBI as saying.

Reserve requirements not only guarantee deposits, but also serve as a CBI tool to control money circulation, inflation and money supply growth. The CBI determines the reserve requirement ratio of banks.

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