Banks in the first four months of 1402, according to the Central Bank’s report, have provided more than 333,760 billion Tomans in small loans, of which 21,580 billion Tomans have been paid through credit cards.
According to the IDEA, the volume of small loans in the banking network in the first four months of the year 1402 exceeded 333,000 billion Tomans. These loans have been allocated to applicants by the banking network in the form of credit cards and small loans, constituting 23% of the total banking facilities paid. Out of the 333,760 billion Tomans in small loans in the banking network, 21,580 billion Tomans have been paid through credit cards.
The Central Bank’s report states that with the inclusion of small loans paid through credit cards to households, the share of households in banking facilities increases from 17% to 18%.
The Central Bank, in June of the current year, increased the ceiling of small loans in the banking network by 50% compared to the previous year, setting it at 300 million Tomans. The ceiling for small loans was 200 million Tomans in the previous year. In the Central Bank’s directive, credit institutions were instructed to provide small loans to customers based on credit rating conditions, domestic credit ratings, and the customer’s credit limit in the form of installment contracts.
It seems that the Central Bank wishes to channel the payment of facilities through credit scoring and, in this way, increase small loans. The Central Bank’s report does not mention the share of LandTech companies in Central Bank facilities. Currently, some of the small loans provided by banks are paid through credit lines defined by banks for LandTech companies.
Additionally, the Central Bank’s report on the payments made by banks shows that in the first four months of 1402, compared to the same period in 1401, there was a growth of 28.8% in facility payments. Based on this, the payment of facilities has increased from approximately 303,000 billion Tomans to 357,000 billion Tomans in the first four months of 1402. The Central Bank’s report indicates that about 1,123 billion Tomans have been paid to legal and natural entities, and 23.5 billion Tomans have also been paid to households out of the total facilities in the banking network. In fact, more than 82% of the facilities in the banking network have been allocated to economic enterprises, and 17% have been paid to households.
However, the Central Bank has issued warnings about controlling inflation, and despite emphasizing the current path of facility payments, it has also mentioned the potential arising from overall demand pressure in the economy. The Central Bank has emphasized the need to increase the financial capacity of banks and has set a goal of reducing non-current facilities.
Furthermore, the Central Bank has stressed the importance of proper lending practices by banks and increasing efficiency in capital circulation within the production cycle to encourage production companies to move towards the capital market. In essence, the Central Bank is trying to redirect the capital supply path of economic enterprises from bank lending towards the capital market. On the other hand, this Central Bank report indicates an increase in the payment of small loans from the banking network to households, and payments through credit cards have also increased.
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