Details of the new interest rate for banking facilities

According to the recent decision issued by the Monetary and Credit Council, the profit on banking facilities, which was 18% before, increased by 5% to 23%, but the profit (fees) on loan facilities and facilities such as marriage will not change. .

According to the informants, last Monday, February 10, the interest rate on banking facilities was announced, as the interest rate on banking facilities reached 23% from the 18% that was announced in previous approvals.

Paragraph (b) of this decision stated that “the interest rate on non-participatory contracts for banks and non-bank credit institutions is a maximum of 23%, and the expected interest rate for cooperative contracts that can be included in the contract between the bank / non-bank credit institution with the customer should be equal to 23 %”.

In the same decision, the Central Bank referred to the excesses of some banks in this field in the past years: “According to the Central Bank’s circular to the banking network, in recent years, some banks and non-bank credit institutions, by resorting to special and unusual methods and methods, of prices Interest on facilities and interest rates on long-term investment deposits.As has been emphasized many times before, the continuation of such disruptive and unhealthy actions will distort the country’s monetary policies and the achievement of the central bank’s objectives will face serious obstacles.In addition, such The measures increase the cost of funds in credit institutions and are considered a threat to the stability and health of credit institutions.

Among the other provisions contained in this decision, related to banking facilities, are the documents that are permitted to grant banking facilities to people. Some banks, in order to offer Murabaha facilities or even other types of them, try to block part of the facility or receive an amount from the customer to be blocked in the borrower’s account.

And this time, it was stated in the Monetary and Credit Council’s decision, which all public and private banks were notified of, that this procedure is considered a violation and prohibited. In this paragraph of the aforementioned decision, and after the procedures envisaged for violating the interest rate by banks, it is mentioned that “in addition to adhering to the provisions of Circular No. 375517/00 dated 23/12/1400 regarding: the prohibition of taking any deposit as a cash security in any form, before Or after the facilities, as well as withholding part of the facilities granted in any way, as well as Circular No. 108495/01 dated 5/2/1401 regarding the issue of prohibiting the issuance of a bank guarantee to guarantee the facilities granted by the bank / non-bank credit institution, it is confirmed again .

In accordance with the warnings contained in this decision and the expected procedures that include re-examining the qualifications of managers of banks and non-bank credit institutions, referring the matter to the Disciplinary Board in banks, canceling confirmation of the professional qualifications of managers, etc., it must be known whether this procedure is applied in banks that have used This way to facilitate customers, will it change?

the end of the letter

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