The 15th International Exhibition of Financial Industries (forex, banking and insurance) opened Tuesday in Tehran with companies displaying a variety of innovative services.
Among other things, a financial instrument for transferring funds between Iranian and Russian businesses is set to be unveiled at the four-day FINEX 2023 event.
At the opening ceremony, Ahmadreza Alaei, the CEO of Iran International Exhibitions Company, said the new device was developed jointly by Bank Pasargad Iran and Sberbank of Russia, IBENA reported.
The event features the presence of 136 companies in the fields of stock exchange, banking, and insurance with a total of 260 booths.
Gov’t View
Ehsan Khandouzi, the economy minister, commented on the performance of the ministry stating that the ratio of bank facilities to deposits increased from 83.2% at the end of the last fiscal year to 85.1% in March 2023.
Concurrently, non-current real claims of the banking network decreased from 4.8% in 2022 to 4.4% in 2023, demonstrating the performance of the banking network in collecting claims.
The minister added that the share of knowledge-based companies in bank loans increased by 165% in fiscal 2022-23 compared to the previous year.
Share of microfinance since the government took office in mid-2021 has increased to 15% from 13% in the years before while corporate securities and corporate financing quadrupled last year, he noted. "The share of corporate securities from total debt securities capacity also increased."
He emphasized the need for “proactive policies” in the field of credits, stressing that the financial sector should steer clear of “nonproductive and speculative” businesses.
The existence of troubled financial institutions that pay for their current expenses through additional withdrawals from the central bank is unacceptable, the minister said.
"This issue will be addressed strongly in the current year".
Khandoozi also took stock of cryptocurrencies. "Given the present state of affairs, the government wants to make use of cryptocurrency in foreign trade."
"We insist on using crypto capacity to help improve the country's commercial conditions. In collaboration with the relevant bodies, namely the Central Bank and the Ministry of Energy, we have prepared a draft on cryptomining and crypto-exchange platforms, which is under review."
If the draft is approved by the Cabinet, we can take a step toward effectively utilizing cryptos. Determining what need to be done about the future of cryptocurrencies is a key feature of the Sixth Five-Year Economic Development Plan".
According to the minister, "On the road to decent economic growth, we are determined to make effective use of new financial instruments, including digital currencies."
Capital Market
Majid Eshqi, the head of the Securities and Exchange Organization (SEO), addressed the inauguration saying that this year’s event offers an opportunity to help foster financial knowledge for the public and businesses.
"Financial literacy is a crucial component of the modern era. We have launched a Financial Literacy Center at the SEO to help assess the financial clout of the people and promote it at various levels (schools, university, for managers and the general public)," IBENA quoted Eshqi as saying.
Elaborating on the role and significance of private enterprise as a driving force behind financial markets towards innovative solutions he said, "The private sector plays a key role in the financial industry. Presently financial services such as portfolio management and brokerage are among the functions of private companies."
"Privatization in the financial industry has made good progress and has high marks when it comes to efficiency. There are ten leading private brokerage firms. In recent years, most innovations were carried out private firms and the SEO indeed supports the growth of private enterprsie."
Eshqi emphasized that increased public participation is the only way to achieve growth in national production.
"Electronic issuance of financial licenses and publication of securities is also important. At the [upcoming] Financial Industry Exhibition, the process of issuing debt securities (Sukuk Plus) will be unveiled," he said.
Equity futures contract will also be introduced and will contribute to the stability of the stock market…investment funds can help stabilize the market by utilizing such instrument, he noted.
Given that the financial technology (fintech) sector is growing by leaps and bounds at the global level, the Tehran exhibition provides noticeable opportunity for professionals, entrepreneurs and investors to explore emerging trends, network, and discover potential collaboration. The introduction of modern financial tools aims to enhance efficiency, transparency, and accessibility in financial transactions, ultimately contributing to the growth and progress of the nation.
