Credit suffocation of economic growth What factors caused a decrease in the real value of the facilities in recent years? Investigations show that the real scope of the bank's frameworks in 1404 decreased by about 20% compared to 2017. This reduction occurred in a situation where nominal facilities grew during this period by an average of 35% per year, but the producer price index increased by more than 42% per year. As a result, the increase in the nominal amount of the loans could not maintain the real financing power of the companies. At the same time, the uneven distribution of credit made it difficult for private small and medium enterprises to access banking resources. One of the main factors in reducing the real power of the facilities, increasing the speed of money circulation and reducing its real demand due to the increase in inflationary expectations. This behavior resulted in the inflation rate exceeding the liquidity growth rate. In such a situation, the nominal increase in facilities does not necessarily increase the financing power of production; Because the increase in the cost of raw materials, equipment and other inputs will always move one step ahead of the increase in facilities. In addition to reducing the actual number of facilities, its distribution is also very unbalanced. Inefficient management of some enterprises, binding pricing and macroeconomic instability reduced the productivity of many large enterprises and increased their dependence on government support and cheap banking facilities. On the other hand, the negativity of the facility's real interest rate intensified the competition for access to cheap loans. In this competition, large companies with special connections and access are often in a better position to attract credit. As a result, the bank's resources are not necessarily directed to more productive companies, and small and medium-sized private companies, despite the ability to grow and create jobs, are denied sufficient access to financial resources. The continuation of this trend limits the growth of private companies and the creation of jobs, and prevents the exit of inefficient companies and their replacement by more productive companies. the channel.

Credit suffocation of economic growth What factors caused a decrease in the real value of the facilities in recent years? Investigations show that the real scope of the bank's frameworks in 1404 decreased by about 20% compared to 2017. This reduction occurred in a situation where nominal facilities grew during this period by an average of 35% per year, but the producer price index increased by more than 42% per year. As a result, the increase in the nominal amount of the loans could not maintain the real financing power of the companies. At the same time, the uneven distribution of credit made it difficult for private small and medium enterprises to access banking resources. One of the main factors in reducing the real power of the facilities, increasing the speed of money circulation and reducing its real demand due to the increase in inflationary expectations. This behavior resulted in the inflation rate exceeding the liquidity growth rate. In such a situation, the nominal increase in facilities does not necessarily increase the financing power of production; Because the increase in the cost of raw materials, equipment and other inputs will always move one step ahead of the increase in facilities. In addition to reducing the actual number of facilities, its distribution is also very unbalanced. Inefficient management of some enterprises, binding pricing and macroeconomic instability reduced the productivity of many large enterprises and increased their dependence on government support and cheap banking facilities. On the other hand, the negativity of the facility's real interest rate intensified the competition for access to cheap loans. In this competition, large companies with special connections and access are often in a better position to attract credit. As a result, the bank's resources are not necessarily directed to more productive companies, and small and medium-sized private companies, despite the ability to grow and create jobs, are denied sufficient access to financial resources. The continuation of this trend limits the growth of private companies and the creation of jobs, and prevents the exit of inefficient companies and their replacement by more productive companies. the channel.