Tehran Keeps on Borrowing

EghtesadOnline: Central bank data says total lending by the banking system reached 13.23 quadrillion rials ($89.4 billion) during the 12 months to July 22.The figure was 29% higher year on year.

News ID: ۷۸۴۲۸۳

31 October 2018

The amount was 5.2% higher compared to the end of last year (March 20), Iranian Bank & Economy News Agency reported.

Accordingly, the biggest share of the loans went to Tehran at 8.61 quadrillion rials ($58.22 billion), while Kohgiluyeh and Boyer-Ahmad Province was at the lower end of the ladder with 44.2 trillion rials ($298.64 million).

Loan-to-deposits ratio (after deducting the reserve requirement) was 84.5%, up 0.5% YOY and down by 0.9% compared to the end of last year. The ratio stood at 96.5% for Tehran Province and 106.4% for Kohgiluyeh and Boyer-Ahmad, according to Financial Tribune.

It is worthy of mention that the reason behind high value of loans and deposits in Tehran Province is the fact that central offices of many companies and factories are in the capital and almost all their main financial and monetary affairs are conducted via banks and credit institutions in Tehran.

The total value of lenders deposits totaled 17.46 quadrillion rials ($118 billion) by the end of July 22, indicating a growth of 28.2% YOY and 6.1% compared to the end of last year. Tehran  topped the list with 9.86 quadrillion rials ($66.67 billion) and  Kohgiluyeh and Boyer-Ahmad again was at the bottom end with 46.8 trillion rials ($316.2 million).