The capital market can help with non-inflationary financing

In a conversation with Mehr, Malik Sarpanahi said, referring to non-inflationary financing, the use of capital market capacities to finance companies is growing, and in the global market, this financing can not impose inflation on the economy in addition to economic and construction development.
He said: Currently, most of the financing is done through the bank, which has always led to inflation due to the high interest rate, and manufacturing companies have no luck with this financing.
This financial expert stated: This process has caused banks to engage in non-productive activities and impose inflation on the economy in order to earn profit and stand on their own feet.
He emphasized for this which should stand in front of the non-productive activities of the banks, he noted: it seems that paying special attention to the stock market and financing in this way does not lead to inflation because it uses the available liquidity in the market and enters the production cycle.
Sarpanahi continued: In the capital market, there are 2 categories of financing based on debt and capital, while the bank only has financing through debt, and financing only in this way causes an increase in financial risk.
This economic expert stated: it is very difficult for companies to get cheap financing from the bank because the non-productive activities earn the bank a lot of profit. may Because of this issue, the bank does not want to finance.
Source:mehrnews