Statement by Managing Director

Banking system of country in 2015-16 left behind the year of sanction was passing through different ghat.

During the recent years, the country banking system has faced with difficult and challengeable sanctions which disconnected the most Iranian Banks with international Banks. So the cost of commercial dealings with other countries experienced many problems. The most important points of Central Bank of Iran in this year was comprehensive program organizing unauthorized financial and credit institutions, deducting the banking interest rate and exchange rate reform. Moreover the strict policy of the government and parliament to reduce the direct banking investments and nominal assets was clearly evident.

To depositor in banks earned the most return of investment in the last year.

Theoretically, in a free market the supply and demand mechanism, will nominate the interest rate which mainly depends on the imposed policy of the money policy makers decisions.

We have previously faced with interest rate control command and interference in the market logical mechanism frame, which this control command ultimately did not lead to the desired results in the field of economy high demand for banking loans and open credit policies in payment of facilities, regardless of the present capabilities and excessive macroeconomic indicators and indiscriminate increase in monetary base is one the causes of uncontrolled inflation in the past.

With establishment of eleventh government and the president's emphasis of control the inflation monetary policies guided to decrease of inflation rate.

Relation between interest rate and inflation caused the limitation of Central Bank of Iran’s credit lines, and a strict control was imposed on monetary base. On the other hand the stagnation govern on economy and the cruel sanctions, while locking and decreasing the credits circles added the non-current receivables and nominal assets of the Banks. Consequently Banks faced with problems related to mismatched maturities of loans and deposits and faced reduce liquidity. (Facilities with more long terms of maturity than deposits)

This lack of liquidity created an unjustified competition between the banks for resources absorption. Though the interbank interest rate reached 30 percent at the beginning of the year and the balance of some banks held with CBI were debited payment of over interest rate from banks side, made the faced a doubled liquidity problems and enforced to effect payment of  interest to their investors, from absorption of fresh deposits. In fact, the banks sacrificed the tendency to earn profit against their lack of liquidity, at the same time the inflation was declining and the recession continued to plague the economy.

In this condition the difference between nominal interest rate and the official interest rate paid on deposits, indicated over %10 in deposits rates of some banks.

It was a unique opportunity that due to that time economy situation, achieving the same in other economy sections was considered unavailable. By applying more open credit policy by Central Bank of Iran in the second half of the year, we faced the reduction in statutory deposits and strengthen interbank market, following deduction of bank's deposits interest rate and getting closer to issued rates announced by money and credit council.

With regards to the future of economy in post-sanction, more efficient parallel markets, including market capitalization and liquidity to finance the firm's entry in to this market, log blocked foreign exchange earnings towards the country and the efforts of the government to pay the dept. of the Banking sectors and contractors, entrance of credit lines with more attractive rates of Iranian Banks' rates, and the government's policy of foreign exchange price controls in specified range, considering the sufficient reserves of CBI ,as well as monetary policy-marker belief to reduce the interest-command rate, it seems that in the future we will face with father cuts in interest rates of deposits.

But Ansar Bank ,in spite of all the fluctuations in banking system scope and rely upon His Grace and Supreme Leader’s Statements regarding implementing Resistive Economy policies and towards the governmental economic policies and by the bank’s efforts of committed and specialized staff, could achieve the predicted plan in 2015-16 along with the bank’s evolutionary plan.  Undoubtedly reaching to the forecasted profit in budget and appropriate returns and also many other honors such as “First Rank of Disclosure Quality” among Stock Exchange banks and achieving the second Rank of Leading Company among one hundred prominent companies in Iran by Ansar Bank in 2015-16 that represent Ansar Bank’s achievements in various scopes.

In the next year, the bank’s Board of Directors on the basis of Resistive Economy policies will act in a way that not only achieving to the bank’s aims and the second three – year evolutionary plans which is the first year of its implementation, but also be nominated as an Islamic-Iranian prominent bank among other Iranian banks.

                                                                                                       Managing Director