Monetary and Banking Research Institute
Date:2/20/2019 3:13:14 PM   |   Code : 294232   |   View: 1120

Financial Restructuring of Bank Melli Iran

Executive Summary

Due to the economic and political turmoil in Iran in the 1980s and early 1990s, banks faced sharp increases in non-current claims on their balance sheets and reductions in their turnover. Meanwhile, Bank Melli, as the country's largest state bank, faces non-profitability and an increase in the volume of non-current claims for various reasons, including financing infeasible economic plans. On the other hand, considering the goals of macroeconomic policymakers in the country and important upstream documents such as the Resistance Economics Document and the 1404 Development Prospect Document, Bank Melli, is one of the key leaders for financing large industrial projects to create jobs. According to the Strategic Plan of the Bank Melli Iran, one of its strategic priorities is the sustainable financing of the government. Also the reduction in reliance on oil revenues, and increased profitability and return on assets are considered as quantitative targets in this regard. The existence of a desirable structure of balance sheet is one of the key requirements for increasing bank profitability and contributes significantly to bank revenues.

The "Financial Restructuring of the Bank Melli Iran" aims to provide a coherent financial plan for reorganizing the balance sheet structure, including assets and liabilities, and to reduce bank's financial costs besides increases in revenues and profitability. The main goals of this plan are:

·        Investigation of the current status of the Bank Melli Iran's financial structure

·        Determining the characteristics of the desirable condition of the financial structure for the Bank Melli Iran

·        Determining the most important strategies to create a favorable situation in the financial structure of the Bank Melli Iran

·        Determining operational strategies to increase bank income and the effectiveness of the capital of Bank Melli Iran


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