According to IRNA's report from the Ministry of Economic Affairs and Finance, the control of banks' balance sheets is one of the central bank's tools to curb liquidity, and in this regard, the central bank has put the implementation of this policy on its agenda since the second half of last year.
After the implementation of this policy, the intensity of the growth of banks' balance sheets has decreased significantly, and other banks cannot increase their assets without restrictions and limits, which include granting facilities, investing in stocks, buying fixed assets, and so on.
In the circular issued last year, the Central Bank had set the growth of the balance sheet at 2% per month and 2.5% for specialized banks, but new rules were announced in early August, based on which The growth range of banks' balance sheets will be between 1.33% and 2.5% per month; In addition, the two Qarzul Hosna banks can grow their balance sheets by 4.5% per month.
The new rules were announced in August and definitely what has been achieved until August this year is the result of the rules that have been followed since last year.
Reducing the growth of the balance of the facilities granted by banks from 19% to 8.2%
The balance sheet of banks and assets subject to balance sheet growth limits include several items, but considering that the report on the growth of banks' balance sheet is published once every three months and also due to the high share of the balance of granted facilities, we can make a clear assessment of the trend from the growth rate of the balance of the facilities Achieve balance sheet growth.
The latest statistics show that the growth of deposits without deducting legal deposits has reached 6,151,292 billion tomans at the end of August this year, which has grown by 11.2% compared to the end of last year.
The balance of deposits after deducting the legal deposit also grew by 11.1% and the balance of granted facilities increased by 8.2% in the first 5 months of this year, but in the growth of the balance of deposits after deducting the legal deposit and the balance of granted facilities in the first 5 months Last year it was 17.1%, 17.6% and 19% respectively.
In other words, in the first 5 months of this year compared to the same period last year, the growth rate of deposits has decreased by 34.5%, deposits after deducting legal deposits by 36.9%, and the balance of granted facilities has decreased by 56.8%.
The downward trend in the growth of deposit balances and facility balances in a year ending in August 1401
Also, the statistics of the 12 months ending in August 1401 compared to the 12 months ending in August 1400 are interesting.
In a year ending in August of 1401, the growth of deposits was 35.5%, the growth of deposits after deducting the legal deposit was 34.9%, and the growth of the balance of granted facilities was 34.9%, but in a year ending in August of 1400, the growth of deposits 46.7%, the growth of deposits after deducting the legal deposit was 46% and the growth of the balance of granted facilities was 52.4%.
Therefore, in the period of one year, in a year ending in August of this year, compared to a year ending in August of 1400, the growth of deposits was 23.9%, the growth of deposits after deducting the legal deposit was 24.1%, and the growth of the balance of granted facilities was 33.3%. The percentage has decreased.
According to the new regulations announced some time ago, the growth of banks' balance sheets is determined based on 7 regulatory criteria. Based on these criteria, the range of monthly growth of banks' balance sheets is 2.5% to 1.33%.
Based on the set regulatory criteria, the standard bank can have balance sheet growth at the highest level of the set range, and the non-standard bank will be allowed to grow at the lowest level, although the 2.5% growth is only applied to specialized and development banks, as well as the growth of the balance sheet of banks Qarz Al-Hasna can be increased up to 4.5% per month.
For the implementation of this policy, the legal deposit rate of banks that exceed the set limits will be increased. Last year, 9 banks and this year 6 banks were subject to the increase in the legal deposit rate. Also, in order to increase the deterrence of this tool, the Central Bank has increased the legal deposit rate from 13% to 15% with the permission of the Money and Credit Council.
. by [author_name] https://www.globalcourant.com/the-growth-of-money-creation-by-banks-decreased-by-57/?feed_id=23622&_unique_id=63284b3cd21c0
