One of Iran’s top bankers has renewed the beleaguered banking system’s call for service fees to emerge as the main source of income instead of interests. “Bank Melli Iran has started charging better fees for banking services to reduce its loan interest rates,” Mohammad Reza Hosseinzadeh, CEO of the bank, was quoted as saying by Banker.ir. He said if his plans go well, BMI, Iran’s biggest bank, will reduce its loan interest rates from the current 18% to 14% and even below 10% for manufacturing units. “When banks give 20% interest on deposits, even receiving 18% interest on loans is not profitable,” he said. Hosseinzadeh was referring to certificates of deposit that were temporarily issued at a rate of 20% a few months ago on the order of the Central Bank of Iran for preventing a further slide of Iran’s national currency, rial.

Source:

2018, Iran, BMI Targets Lower Lending Rates, Sunday, May 13, p.1,<https://financialtribune.com>