According to the International Stone Exhibition of Iran, the Bank Participation Meeting: Explaining the Current Status, Challenges and Opportunities was held on Wednesday this week with a gathering of professors, experts and activists in the field. The meeting was the third specialized meeting of the sixth annual conference on resistance economics. The conference will be held on February 21, 2009 with the theme "Banking in Service to Production".

* Majid Qasemi's Report on Forced Corporate / Should Not Block Bank Corporate

At the beginning of the meeting, which was held by Dabiri Nasiri, a member of the Scientific Committee of the Allameh Tabataba'i University, Majid Ghasemi, Managing Director of Pasargad Bank, said: "One important question is whether banks have become corporate inactive or on their own initiative. They have moved on. Part of this investment was forced and forced to enter due to deferred demands from the government and the private sector. The first thing to know is how many percent of bank capital is invested in the corporate sector.

"Our economy is over ninety five percent based on bank financing," he said. In this economy we cannot talk about financing other than the bank because it completely closes the path of development and investment.

Qasemi continued: "Now the government and the private sector are not able to invest and the banks have a lot of deferred funds and are plundering banks. The amount of capital accumulation in our economy is now experiencing negative growth. In these circumstances, we should not stop the growth of the country by stopping the banks from operating.

The chief executive of Pasargad Bank said that the useless banking operation allowed direct investment of banks except for formal and non-essential matters for the country's economy. Of course, if the bank enters into business, it must be in line with the country's economic growth and development and the realization of a resilient economy.

He said: "When a bank invests in a semi-finished project or an economic activity, on its own initiative or on its own, one cannot expect it to be limited to financing and not entering the management and corporate phase."

Qassemi continued: In many countries, including Japan, banks have been widely involved in all aspects of the economy and are directly involved in large scale construction projects such as hospital construction.

Khodayari: Banks' willingness to participate is due to the difference in returns with other activities

"The first point is that banks' investment is generally accepted in the rules," Khodayari said. But the main reason for banks' willingness to invest, the monetization of their lending and corporate income streams means the bank's direct entry into economic activity. Banks' income from lending facilities is not profitable due to deferred claims and other problems. But buying property and direct entry into business is more profitable because of high inflation and so on.

He added: "On the other hand, the transfer of property and firms to other entities and entities faces difficulties and margins, which has diminished the incentives of banks." I believe that banks should have some direct investment opportunity and should not be limited to banking.

"At present, banks have less than ten percent of their total capital," he said.

* Shakeri: Entrepreneurship banned because banks misbehave / need banks to enter big projects

"We are in the business cycle, and the banks have been told to leave the business and buy the property," he said, "because of high inflation, the property market was in recession." The notion that banks 'assets in the real estate sector were locked up was the main reason for the decline in banks' lending capacity.

"That's why the rule has been to stop it," he said. Another point is that banks have been trying to lend to their subsidiaries, and this has been a contributing factor.

Shakeri continued: Who has basically said that giving a bank a private sector priority over facilitating its own projects? It is not necessarily limited to giving facilities that are said to help the private sector. If the logic of usury-free banking is based on power of attorney, how can we prevent banks from investing directly?

The economist said, of course, that many banks have been skeptical of Iran's development plan. For example, investing in a private bank in areas that have no economic justification is much larger than a bank balance sheet. So the solution should not be to completely ban banks from investing directly; rather, we should instead set bad example and avoid diversion of resources.

Shakeri continued: "The whole banking system should act on the issue of direct investment in the form of an overview of development, but let's not close them and just avoid bad things."

He added: "The important thing that can be done in this field is to have a positive perspective instead of a negative one and to define big projects for the development of the country for the banks." Otherwise, this added monetary base will shift to other activities over time, and despite rising inflation, there will be no increase in growth and the creation of fixed capital.

Shakeri said the first and second development programs had a relatively good characteristic in their time and that large development projects were defined. We can now model a large development plan by encouraging banks to step in.

"If this is the case, the banks will be less likely to behave badly and will have many benefits to the country's economy," he said.

"The bank is not an ordinary economic institution because it has the power to issue public money," Shaker said.

He added, therefore, banks should be involved in economic development as well as being profitable as an economic entity in order to properly regulate the economy.

Sharifzadeh: The central bank's main goal should be development of the country / Inflation is a secondary target

Sharifzadeh, a member of the faculty of Imam Sadiq University, said: "Unless the banks are strong, the economy of the country will not be strong." The banking system has weakened in recent years and we have taken no steps to strengthen it.

The main problem of our banking system is development and financing development, the university professor continued. In the current conditions for development, foreign capital cannot be hoped for and therefore internal resources should be relied on, including the banking system and the capital market; and in the current economy the capital market has virtually no contribution.

He added: "The central bank's main goal should be to secure development and its focus should be on controlling inflation and maintaining the stability of the banking network."

"Some economists believe that money is a tool of development, and some believe that money has no role in development," the university professor said. Of course, I believe that people who do not consider money as a means of development are not economists at all.

He added: "No country without a strong banking system has been able to move forward in financing development financing." The central objective of the central bank should be to secure development, and its focus should be on controlling inflation and maintaining the stability of the banking network.

Sharifzadeh said: "The optimal model of banks' operations is fundamentally dependent on time and place conditions, which we should not completely ban in the current era.

* Parvizian: State-owned / hand-held bank instrument to deal with anti-corporate

"The task of the bank must be clarified in the national economy," Parvizian Bank Managing Director Parvizian said. Banks are now thought to be the tools for the administrative and governmental structure of the economy to fulfill what comes in the country's development laws or laws. However, banks must be accepted as an enterprise.

He added: "The bank is seen as a tool for executing government officials' duties and is always tasked with them." This process has worsened during this period and basically no definition of a private bank can be provided.

Parvizian continued: "This process has made it impossible for oversight bodies to carry out their duties." Supervision does not really make sense when banks do not act like an enterprise and have to execute some orders.

Parsian Bank CEO said: Strangely, the main regulator of the banking network has been replaced by the acceptance of numerous other regulatory bodies. Currently all the provincial authorities, the judiciary, the nationwide inspectorate, the court of accounting, law enforcement, etc. have all come into the bank and are intervening, which is not a good thing.

He added: "The right demands of the government and the people of the banks under the law should not affect the bank's economic performance as an enterprise."

In our country, banks have been recognized as intermediaries of existence that must take resources from one place and allocate to places on its own or the policy maker's part, but this recognition is also flawed. The most disadvantageous part of banking operations is the provision of formal facilities.

He said: Once upon a time the ratio of facilities to deposits had gone up to 100 percent and had reached about one hundred and forty percent, which could not be justified at all. But now, lending facilities are the most damaging activity of banks, one of the reasons being the legal protection of borrowing facilities. This has made the recipient's facilities virtually no incentive for proper and regular payment performance.

"I believe that banks should be able to play a proper development role for the national economy," said Parvizian, "and the way is to use the capacity of banks to create new capital, especially in semi-finished sectors." Be. Semi-finished projects are stalled due to scarcity of resources, costing the country in lieu of profitability, and banks should be permitted to access these areas in order to achieve a quick profit cycle. Banks can also invest in various structures, such as stock exchanges or funds, once projects are completed.

At the same time, he added, should be treated in cases where banks have invested in contravention of the law.

* Sharifi: Banking is a problem for banks

"Banks, and in particular the National Bank in particular, have no problem investing in companies willing to invest," Sharifi said. The problem is when the bank is forced to invest in a project or invest.

He added: "The National Bank has acted in accordance with the law for the divestiture of its business shares, but it faces serious problems along the way."

* The secretary: Banks have not entered important sectors of the economy

"In a bank-driven economy, banks must have a role to play," said Pasmagad Holding CEO Nasim Salamat Health. But today banks only enter a number of areas, some of which are formal and unimportant. But in the most important sectors of the economy, they do not conduct capital. In particular, the lack of banks and large corporations in the health sector has created problems in this area.

"Our health industry has serious challenges, most notably the challenge of capital accumulation, while contributing 10 percent to the country's economy," he said. Banks have invested only in areas such as coins, housing, automobiles and the currency, and important sectors such as health care lack banking resources.

"In short, the asymmetry of the bank's business, far from being good or bad, is one of the most important problems in the country," the secretary continued.

He said the quality of the banks' businesses is important, not its volume, and should be discussed in this regard.

* Midri: Banking is necessary, but not irregular

"Banking is part of the economy of the country and its policies must be tailored to the labor market policies and even the welfare policies of the country," said Midri, deputy minister of labor and social co-operation.

He added: In the 1920s, there was a major banking crisis in Japan, and the government decided to merge banks and divide the industries into six major banks called Kairotsu, each responsible for Japan's industrial development in the core industries. The recent economic crisis in Japan has also taken place due to the weakening of the banking system, which is out of the way of industrial development.

However, why the issue of the need for banks to leave the business, despite the disadvantages, has been raised in Iran, can be for several reasons, one of which is the need to provide banks with facilities and people to leave the business, The order is fulfilled. Another reason could be the boom in stocks.

"But I think we need to allow banks to have direct access to businesses and to have industrial development in place," he said. Many countries have followed industrial development along the same path.

If the country does not oblige banks to cooperate in the development of the country, including the construction of construction projects and does not give up, the facility will be poorly run, Madri said.

He added: "So there is no doubt that banks should have a stake in business development and investment." But what the rules are for it is important.

* Amini Raia: Financing, Misappropriation of Banking / Banking Facilities Corrupted

Further, Amini Raia, director of the Resistance Economics Network, said: "The survey shows that the current bank performance is not favorable." Widespread investment in finance when major sectors of the economy do not have access to finance is one of the most misguided business practices that is not on the path to development.

"In fact, the quality of the firm is important, not its volume, and the status of banks should be examined in this regard," he added.

"The bank is an institution that has the power to create money and create credit," Amini Raia said. Therefore, the bank should not be seen merely as an enterprise. Before being an enterprise, the bank is the institution of money and credit creation and guidance in the country.

"Which business can make money and continue to operate with thousands of billions of dollars in losses," said Resistance Economics Network Manager. The bank is the governing body of money in the economy and therefore can do so.

He added, therefore, that the bank's business should be in line with the country's development and not be left as an entity. In other countries, corporate banking is only permitted to develop their country.

Amini Raia went on to say: Banking facilities are said to be a disadvantageous activity, why?

He added: "To what extent should the deferred facilities of the banks go back to their in-house facilities and their operation and to what extent they are related to their bad and corrupt lending facilities?"

Amini Raia said that the role of the banking system in the development of the country should not be put on the agenda with the creation of a new bank.

"But a development plan must be formulated and all existing banks required to play a part in achieving the goals of the program because they have the power to create money," he said.

* Hosseini: "Targeted Banking Facilities" is a viable alternative to direct banking

Husseini Dowlat Abadi, an expert at the Majlis Research Center, said: "The bank is the institution of money creation and should help the development and economy of the country." The role of the bank in developing countries is clear.

But he added, "The argument behind this is that the bank's development assistance should not necessarily lead to direct bank investment and investment." The bank can provide economic activists with facilities in different sectors of the economy, but the bank's contribution to the country's development process does not necessarily result in the bank having to enter the sector directly.

"So what are the benefits and disadvantages of asking the bank's direct entry into the business and using the money-making advantage to enter the business," Dolatabadi said.

"In fact, we must answer the question that direct entry of banks into some areas does not lead to unequal competition of companies in the economic sector," he added.

Khosravi: Conflicts of Interest Become Banking / Big Banking Firms

Following the meeting of Khosravi expert of Majlis Research Center said: The main issue of the firm is the conflict of interest of the firm with the company in terms of project and project evaluation. In fact, when it comes to the bank's own project, it naturally takes on another aspect of the economy and the profitability of the economy.

He added: "When a foreign company submits its project to the bank, the bank assesses its profitability with the country's economic conditions, but does it also apply to subsidiaries of banks?"

Khosravi continued: "It is said that because of recession and high risk conditions, lending facilities are not profitable and the only way for banks to directly enter the business is not correct or at least not the standard approach of countries." Under these circumstances, governments are borrowing money from banks by issuing bonds and defining development plans.

He said: "If the banks have a business, the influential firms in the economy will go to the bank." This will have adverse political economy consequences. At present, the powerful private sector has been able to engage a significant part of the country's decision-making and executive bodies and make the enterprise worse.

* Tasnim