On Jan. 4-5, Tehran hosted the most significant economic conference held in Iran since 1979, with President Hassan Rouhani, his economic team and 1,500 economists focusing on the economic hardships that have surfaced in recent years.

The need for restructuring the banking system was among major issues discussed in the two-day event, while top monetary officials on the second day of the conference called on the commercial banks to be selective when offering loans.

Akbar Komijan, the deputy governor of the central bank, said in an address to the gathering that the banks should avoid providing loans to applicants whose business plans are not economically justified, implying that if the commercial banks do not provide enterprises with loans, the reason would be lack of eligibility of loan seekers, and not a lack of finances.

In the eight months ending Dec. 21, more than 60% of the granted loans were made to address cash flow issues, according to the central bank governor. The administration of former President Mahmoud Ahmadinejad forced commercial banks to provide financing for manufacturing units in an attempt to revive the economy, but the decision ended up hurting the banking system, as many individuals requested loans on the pretense of running a business, and never repaid them.