Bank imbalance is no longer just a financial term, but has become a serious issue in the Iranian economy, the effects of which are clearly seen in inflation and exchange rates. This condition does not mean the existence of non-performing loans or corporate ownership, but rather the inadequacy of the real value and liquidity of banks' assets to fulfill their obligations.
Causes and Signs of Bank Imbalance
When we talk about bank imbalance, we must note that this problem has roots in their financial and managerial structure. Despite apparent profitability, banks struggle with a plethora of non-liquid assets that are of no use when liquidity is needed. This approach gradually leads to the formation of a crisis, as banks cannot respond to their obligations in a timely manner.
This imbalance directly impacts exchange rates and inflation. When banks are unable to fulfill their obligations, public trust in the banking system diminishes, which in turn leads to increased demand for foreign currencies and consequently an increase in exchange rates. In fact, this is a vicious cycle that leads from imbalance to economic crisis.
Consequences of Imbalance
The consequences of bank imbalance are not limited to the banks themselves. This problem spills over to other economic sectors and can lead to increased unemployment, decreased investment, and weakened production. In the current situation, the need for fundamental reforms in the country's banking system is felt more than ever to prevent this crisis.
Although banking reforms are time-consuming and complex, ignoring this problem could lead to a larger economic crisis. Therefore, it is essential for all stakeholders in this area to think of an effective solution.
