State Banks Seek to Boost Capital

The Cabinet on Wednesday approved a proposal calling for state-owned banks to raise their capital and enhance lenders' capital adequacy ratio, Economy Minister Ehsan Khandouzi said.

"An estimated 350 trillion rials ($909 million) is to be allocated for raising the capital of state banks…This should will help improve their capital adequacy ratio except for Bank Melli and Bank Sepah, to above 8% and augment their lending power," Shada news website quoted Khandouzi as saying.

Government-owned lenders include three commercial and five specialized banks. Bank Melli, Bank Sepah and Post Bank of Iran are the three commercial banks.