Banking Reserves
See also: Fractional reserve systemThe ratios of the banks' legal reserves in the Central Bank in 2009 were as follows:
- Current deposit: 20 percent
- Interest-free-loan deposit: 10 percent
- Short-term deposit: 17 percent
- One-year deposit: 17 percent
- Two- and Three-year deposit: 15 percent
- Four-year deposit: 13 percent
- Five-year deposit: 11 percent
- Other deposits: 20 percent
According to Article 14 of the Monetary and Banking Law of Iran, the CBI is authorized to determine reserve requirement ratio within 10 to 30 percent depending on banks’ liabilities’ composition and field of activity.
Read more about this topic: Banking And Insurance In Iran
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