Banks undeniably play a pivotal role in financing domestic production and driving economic growth. In that regard, Dr. Abolfazl Najjarzadeh, CEO of Bank Melli Iran (BMI), in his latest exclusive article, has highlighted the importance of revitalizing Iran’s economy, emphasizing the need for Iranian banks to function as dynamic, living mechanisms that actively support economic activities.
“For this to happen, the Iranian banking network must address challenges such as inadequate capital adequacy ratios in some banks, increased overdrafts from the central bank, and growing accumulated losses in others,” part of the article reads.
As mentioned by Najjarzadeh, Iran’s banking system, apart from grappling with the adverse effects of unjust sanctions against the Iranian people, must prepare for changes in the banking industry’s operational environment. These include the adoption of artificial intelligence in banking, asset tokenization, and offering banking products and services through blockchain platforms.
Effectively addressing these challenges and transformations can pave the way for Iran’s economic revival and prosperity, leveraging the banking network to finance enterprises and households. Achieving this vision hinges on banks functioning as vibrant mechanisms serving “enterprise creation” to foster Iran’s economic growth.
“Alongside grappling with the effects of the unjust sanctions imposed on the Iranian people, our country’s banking network must prepare to face changes in the operating environment of the banking industry, such as the application of artificial intelligence in banks, tokenization of assets, and the provision of banking products and services on blockchain platforms,” Najjarzadeh wrote.
“Effectively addressing these challenges and transformations can pave the way for the revitalization and flourishing of Iran’s economy, relying on the financing of enterprises and households by the country’s banking network. To achieve this vision, we need, above all, for banks to function as living mechanisms serving ‘enterprise creation’ to stimulate and grow Iran’s economy.”
Elsewhere in his article the CEO urged the need for further changes to keep up with evolving innovation and technology, and the emergence of new business models in the baking industry. “The slow pace of adaptation and resistance to change have deprived banks of understanding market developments and maintaining meaningful connections with customers. Banks now find themselves at the final juncture of competition with digital rivals and must decide how to overcome the remaining adaptation challenges.”
“At Bank Melli Iran, we have recognized this shift and prioritized agility as one of the bank’s core strategies. As part of this agility initiative, we have pursued the divestment of Bank Melli Iran’s stakes in enterprises and companies as an effective operational solution. Since the beginning of the Persian calendar year…
Read More: ‘Enterprise creation’ acts as a catalyst for strengthening Iran’s economy
