Monetary policy to revive slack economy: CBIFIN

In order to address the pressure on the capital of banks and financial institutions, revision of the capital adequacy framework, reduction of good loan loss provisions, provision that some of the reserves in the regulatory reserve can be counted in tier two capital and Cibifin is of the opinion that encouraging the use of capital instruments and new instruments is a positive initiative of monetary policy.

policy rate cuts, Increasing the limit of the regulatory retail portfolio, giving relief to the construction business with special priority, removing the limit of institutional share mortgage loans, adopting a policy to facilitate loans to the agriculture and innovation sector, extending the time period for adjusting the loan by 'variance analysis' in the current capital loan guidelines, It is mentioned that Cibifin is hopeful that the arrangement to review the limits set for micro, domestic, small and medium enterprises will make economic activities sustainable.

Likewise, the initiative taken to strengthen the microfinance institutions, to build a separate mechanism for the regulation and supervision of savings and credit cooperatives is expected to play a positive role in increasing confidence in the overall financial system and maintaining stability. In view of the initiatives taken for the Asset Management Act and the growing use of digital technology in financial institutions, the promotion of artificial intelligence (AI) used in the financial sector is a welcome aspect of the monetary policy, the statement said. The confederation believes that the provision of the necessary infrastructure and institutional structure for the full operation of the National Payment Switch will have a positive impact on the economy.

It has been demanded that practical and effective implementation of the monetary policy to make the economic activities and the economy in a relaxed state by filling the entire private sector with enthusiasm, including the banking and financial sector . "It is imperative that the National Bank implements flexible monetary policy in a way that is more useful for the stability and sustainable development of the financial sector," the statement said. In order to achieve the goal of stability and sustainable development of the financial sector, it is also necessary to adopt more flexible policies through the review of monetary policy and instructions to be issued in the coming days.'