Ahmadinejad: Banking system should be more flexible

President Mahmoud Ahmadinejad Monday urged banks and financial institutions in the country to be more flexible.

Addressing the 46th general assembly meeting of the Central Bank of Iran (CBI), he stressed that monetary systems of the country should also be more dynamic, adding that the approach to economic transactions should be rewritten so that higher growth rates can be achieved.

Banking and monetary systems should be flexible to speed up economic development and promote growth, underscored the president, adding that present rules and regulations applied to financial and monetary transactions should be flexible.

Establishment of factories, agricultural development, increased trade and establishment of infrastructure require liquidity, he said, stressing that the relationship between liquidity and gross national product should always be clear.

If a policy of greater liquidity results in greater production of goods and development of infrastructure, the policy is a factor for success as it will contribute to development and not fuel inflation, the Iranian president noted.

He further underlined the need to pay attention to the Islamic values and aspirations of the 1979 Islamic Revolution, including the enforcement of justice, in deciding on banking and monetary policies.

Observance of the Islamic banking system should lead to materialization of Islamic economic objectives, the president said.

Stressing the importance of electronic banking, Ahmadinejad reminded of the need to fix a suitable timetable for putting the entire country under electronic banking, saying bank transactions would be greatly facilitated.

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