“Ara Shavardiyan”: The Banking System Should Not Spread a Separate Table for Its Employees in Providing Facilities

Ara Shavardiyan wrote in a tweet: The banking system should not spread a separate table for its employees in providing facilities.

The banking system, in return for the power and rent of money creation that the government places at its disposal, is obliged to support production and what brings the greatest benefit to the people of society. But the question is: does a bank have the right to provide facilities to any person or specific entity?

To answer this question, we must first examine money creation in the banking system. In fact, a bank is an institution that can create money and pay it out as facilities to applicants, and this is contrary to the common belief that a bank should be an intermediary of funds between depositors and borrowers. In reality, when a bank provides facilities to an applicant, new money is created and the total liquidity of the economy increases, rather than the depositor’s money being paid to the borrower.

This is while in recent years, the process of providing facilities to ordinary people has become very difficult and arduous, so that individuals who are severely in need of banking facilities wait for long periods in line to receive them, and to obtain them they must provide banks with many documents and paperwork to be permitted to receive those facilities. However, many bank employees, specific individuals and entities are able to obtain facilities without doing any special work or providing sufficient documentation, and in high amounts.

Ara Shavardiyan, representative of Aramean Christians in the northern part of the country in the Islamic Consultative Assembly, in response to the banking system’s provision of facilities, published a tweet and wrote: “The country’s liquidity held by banks is a trust and the banking system should not imagine that it can spread a separate table for its own employees in providing facilities.”