Economy, Business And Markets

Banks May Open Overseas Branches

Banks May Open Overseas BranchesBanks May Open Overseas Branches

Given the fact that the administration has successfully improved business environment and the economy, the banking system will have the opportunity to offer services abroad, said a senior central bank official on Thursday.

Abdolmahdi Arjmandnejad, director of Central Bank of Iran’s anti-money laundry department, said the framework nuclear deal clinched between Iran and the P5+1 (five permanent members of UN Security Council plus Germany) in Lausanne, Switzerland last week will pave the ground for overseas banking services.

A more comprehensive deal is to be signed by June 30, a move that will lead to the lifting of western economic sanctions against Iran.

The CBI has already prepared a letter that has been communicated to all banks, saying that any bank willing to set up overseas branches shall have to file a request with the CBI, ISNA quoted Arjmandnejad as saying.

The official said that in line with the government’s policies, and as banking infrastructure need to be fortified, the CBI is open to the idea and “will not fail to assist.”

 Bureaux de Change

Nearly nine months have passed since the resolution which outlined the regulations for setting up new bureau de change, and the policies with which the already operating bureaux were needed to respect were pronounced.

Accordingly, more than 400 actively operating bureaux were required to extend their permits and increase their capital depending on the city in which they were located.

Despite the fact that the act raised criticism and dissatisfaction among most bureaux owners, CBI’s supervision deputy governor Hamid Tehranfar had firmly announced that the set regulations will not be changed.    

“Out of the 500 actively operating bureaux de change, only 60 have aligned themselves with the new regulations and received official permits to this day.” The rest are preparing the needed documents for implementing the new guidelines, and the process will be fully completed over the next two years, he asserted.

Additionally, during the past years, nearly 10,000 requests have been filed for setting up new bureaux de change, the central bank is reviewing requests in line with the new guidelines so that they may receive their permits once the needed steps are completed, he said.

 Credit Institutions

The official added that requests for setting up new credit institutions are also being reviewed, according to the main framework of a resolution prepared by the Money and Credit Council.

The permits for Kosar and Askariyeh financial and credit institution were issued in the past year (ended March 20), he clarified adding that Arman, Noor, Samen credit institutes as well as Mehr-e Eqtesad Bank are also at the final stages of the process of receiving permits. “If the mentioned institutions manage to comply with CBI regulations they will receive permits in the near future.”