Economy, Business And Markets

MP Welcomes Arrival of Foreign Banks

MP Welcomes Arrival of Foreign BanksMP Welcomes Arrival of Foreign Banks

A lawmaker has welcomed the prospect of foreign banks opening branches in Iran but said this would lead to economic prosperity only if it is regulated by proper oversight.  

Abdolkarim Hashemi, who serves on the Planning and Budget Commission of the Parliament, hoped establishment of international banks in Iran would bring substantial foreign assets into the country, ICANA reported on Wednesday.    

Governor of the Central Bank of Iran Valiollah Seif announced on Monday that the government is preparing a bill to allow full foreign ownership of banks in the mainland. Current regulations allow foreigners to hold a 40% stake in an Iranian bank.

The CBI chief pointed to his recent meeting with the German economic delegation, saying it was decided in the meeting that the Germans launch a bank in Iran. Hashemi emphasized that global banks’ operation in Iran would help increase circulating capital in the economy, saying  it will benefit the manufacturing sector and industries.

The lawmaker also called for foreign banks to be monitored by the regulator, saying that careful oversight would prevent any chances for investors’ money to be compromised.  

“Foreign banks’ branches should be closely monitored by monetary officials and especially by the CBI,” he commented.

He also urged the government to direct foreign banks’ activities toward boosting manufacturing and creating jobs.  

Iran’s banking industry has been depressed due to sanctions, bad management and financial turmoil but the nuclear accord signed between Iran and world powers on July 14 will lift sanctions, opening the way for banks to have business with foreign peers.