changing the balance sheet control playing field; The debt of the banks went under the microscope

An expert on banking issues, explaining the regulatory developments, said: By changing the center of gravity of balance sheet control from assets to liabilities, non-performing banks can no longer hide their resource deficits.

Mohammadreza Safarzadeh, an expert on monetary and banking issues, in explaining the new regulatory approaches, stated that in recent years, the control of the banks' balance sheets has become one of the most effective levers of the central bank to curb the growth of liquidity, curb inflationary pressures, and prevent the ever-increasing spread of disharmony in the country's banking network. He evaluated the launch of the integrated supervision system known as "SIN" as a fully planned and intelligent action in the path of fundamental reform of the banking system and continuous improvement of the level of supervision and added that the policies of the monetary supervisor have entered a much more precise phase by entering the year 1404; In such a way that the main concern is not just the speed of growth of the assets of a financial institution, but the rooting of the source of this growth, the amount of debts created and the actual allocation of resources is the focus of attention. He considered the implementation of the amendment of the rules governing the control of a balance sheet from the beginning of autumn 1404 as a turning point in the abolition of traditional regulations and entering a completely disciplined era.

This senior researcher of the banking field, recalling the inherent function of banks in attracting people's resources and turning them into assets and facilities, noted that if this flow expands without proportion to the real foundation and financial capacity of the institution, it will result in a destructive acceleration of credits and liquidity. He emphasized that the real crisis starts at a point when a bank resorts to the resources of the interbank market or borrows from the central bank to compensate for its deficits. An event that shows that the apparent growth of the balance sheet is not due to the development of business operations, but is a clear warning of imbalance and destructive reliance on short-term resources. According to this expert, the ultimate goals of the balance sheet control policy can be summed up in curbing liquidity, maintaining the stability and financial health of the network, and preventing the creation of unbalanced obligations.

From asset control to debt control

He called the most fundamental change in the current directives as shifting the weight of monitoring from assets to debt items and stated that unlike in the past when only some components of the asset side were under the microscope, now "net items of covered debt" are the main focus of quantitative controls. He explained that the clear message of this change of approach is that the central bank examines the origin of growth; Therefore, components such as non-governmental deposits, net debt to the central bank, and interbank commitments have found a decisive role so that a bank cannot hide its severe dependence and chronic deficit on monetary resources with apparently normal growth.

All banks do not have the same growth ceiling

Referring to the dismantling of common ceilings, this economic expert spoke about determining the permissible ceiling based on the performance and evaluation rating of each institution and emphasized that Natraz Bank should never benefit from the same breathing space and growth as a disciplined bank. He considered the evaluation criteria to consist of three main pillars: evaluations related to banking health, including capital adequacy, CAMELS system ratios, and the volume of overdrafts; Assessing credit performance with a focus on the production chain and curbing outstanding claims; And finally, discipline in interaction and transparency of information with the central bank.

He also clarified that these regulations do not in any way mean closing the doors of attracting deposits or stopping the wheel of granting facilities to economic sectors, but the main goal is to regulate the volume and authenticity of commitments.

System monitoring and executive guarantees

Considering the importance of moving from traditional and paper inspections to real-time and system-oriented processes, this banking expert noted that only the continuous monitoring of data can close the gap between the regulation and its strict implementation. He added that the automation of supervision makes the necessity of transparency in the weight of indicators and how to calculate points inevitable for bank managers.

In the end, pointing to the end of the era of ineffective warnings and the existence of strong guarantees in this policy, he stated that in this regulatory model, it is essential to respect the boundaries and separate legal duties from the growth resulting from the commercial decisions of banks. A framework that avoids baseless differentiation between public and private banks and makes risk and health indicators the only criteria for judgment.