Borrowing by 14 Loss-Making Banks from the Central Bank, Banking System Capital at Below Negative One

The head of the Tehran Chamber of Commerce expressed concern over the frozen assets of banks and their borrowing from the Central Bank, which contributes to inflation, stating that "fourteen banks have accumulated losses and need 470 trillion tomans to compensate for these losses." It is noteworthy that accumulated losses reduce banks' capital, and frozen assets are those that cannot be quickly liquidated, such as real estate or overdue debts. Mahmoud Najafi-Arab continued in an interview with the government news agency ILNA, stating that in the past six months, 1,200 trillion tomans of new liquidity has been created in the economy, of which only 650 trillion tomans has been allocated to production enterprises, while the rest has been used to cover the government budget deficit and other sectors, indicating the financial pressure of the government on the banking system. This representative of the private sector stated that to achieve an 8% economic growth, Iran needs 200 billion dollars in new investment annually. However, given the current conditions, securing these resources is impossible, and there is a significant gap with developed countries. He added that in 2023, the total financing of the Iranian economy was about 65% of GDP, while this ratio for Japan was 471%, the UK 466%, South Korea 332%, North America 296%, Germany 286%, and China 158%. This industry representative emphasized that the Iranian economy is heavily dependent on financing through banks, with 92% of total financial resources coming from the banking network. In many countries, financial resources are obtained from a combination of capital markets, personal resources, savings, and foreign investment. The head of the Tehran Chamber of Commerce further stated that the share of financing for enterprises from bank credits has decreased from 86% to 77%, with the remaining facilities allocated to obligatory matters. He added that the Iranian banking system needs 1,100 trillion tomans in capital to cover operational risks and meet global standards, as the banks' capital adequacy ratio has reached negative one, while the global standard for this ratio is 12. Arab emphasized that the capital market could play a key role in financing enterprises, but the reluctance of companies to disclose financial information, the distribution of a large portion of profits instead of reinvestment, and the excessive use of this market by the government due to budget deficits have hindered this. Personal accounts of Khamenei and managers of "Press TV" and "Al-Alam" in the Qard al-Hassan Bank of Lebanon; part of the program on the last page. The dollar is at 68 thousand tomans; the Central Bank: God willing, it will remain within these limits. Accusations of "corruption on earth" for the first and second defendants in the National Bank theft case. A deep gap in gross national income per capita: Qatar at the top, Iran at the bottom of the table.