Reform Iran’s Banking System;
The Three Labours
By Mahdi Goodarzi & Mojde Rezaee
The current article, whose first part was published here, deals with the main three items to be corrected in order for the mentioned reform plan in Iran’s banking system to take place, which is hoped to eventually result in prosperity in Iran’s Economy.
The Road Map
Cash flow and toxic assets crisis in banks, as a short-term to midterm problem in Iran’s banking system, is the result of structural and organizational conditions, whose sustainable solution takes time; until then, they may negatively affect the banking system for a while, adding to its instability. Consequently, it is important to first bring about a temporary improvement in this system using new policies and then, start implementing a comprehensive reform plan. In line with fundamental actions to rebuild the banking system along with attempts to restructure their balance sheets, quick measures must also be taken to solve banks’ cash flow problem. Considering the current conditions, this preliminary reform plan for the banking system must have the following features: