Investigation of obstacles and problems of private bank development in Iran مقاله

خلاصه ماشینی:

Limitations such as the absence of deposit insurance, the application of a uniform legal reserve rate, the imposition of a 30 percent ceiling on the purchase of immovable property, instability in political and economic decision-making, the lack of possibility to use government funds, and the weakness of private banking culture, alongside the weakness of Central Bank supervision, the broad scope of that bank's duties, the lack of independence of the Central Bank, concerns about the inability to compete with state banks, and concerns about disruptions in the country's monetary policies, have hindered the expansion of private banks. Keywords: Private banks, financial liberalization, performance of private banks, deposit insurance, uniform legal reserve rate, independence of the Central Bank, agency of government funds, Central Bank supervision, economic stability and security, financial repression. In the Third Development Plan, in order to promote competition, increase efficiency, and create a suitable platform for joining international monetary-financial organizations, Article 89 was predicted regarding the granting of licenses to establish private banks. 6-1- Barriers and problems of active private banks A- Lack of authority over the agency of government funds: According to Article 21 of the country's Monetary and Banking Law, the Central Bank, as the banker to the government, is obliged to maintain government accounts. Also, due to the lack of independence of the Central Bank in policy decisions, the breadth of its supervisory scope, concerns about the inability to compete with state banks, concerns about disruption in monetary policies, and the government's financial dominance over the banking system, the issuance of new licenses for establishing private banks has always been prevented.