Minimum Capital for Offshore Banks €150m
Economy, Business And Markets

Minimum Capital for Offshore Banks €150m

The Money and Credit Council – a decision-making body– has raised the minimum capital requirement for the establishment of banks in free trade zones from the previous €25 million to €150 million. The new standard has been set to help ensure capital cushions for the offshore lenders against possible risks and also enhance their operations and future growth.
The council has also restricted the permit to conduct international banking operations only to banks and their subsidiary units.
 “No other [non-bank] financial institution is allowed to conduct international operations,” according to a statement published on the Central Bank of Iran website on Sunday.
Currently, there are seven free trade zones in Iran. The parliament is  studying a government proposal for launching seven more free trade zones across the country. The proposal envisions launching FTZs in Golestan, Ilam, Ardebil, Sistan-Balouchestan, Kurdestan, Hormozgan and Boushehr provinces.
As per law, foreigners are allowed to own up to 40% of bank shares in the mainland while in the free zones they can open banks with 100% equity.
The government is providing tax exemption and easier visa regulations for work in the free  trade and industrial areas to facilitate business activities for foreign business and their workers.
The CBI is currently reviewing 18 applications for the operation of private banks in the free zones. The applications have been put forward by Iranian investors. The CBI has approved some of the proposals as they met its capital requirement standards. It is reported that the first offshore bank is due to open in Kish Free Trade Zone.
Talks have also been held with the UAE for opening banks in Aras Free Trade-Industrial Zone in East Azarbaijan Province. Chinese and Russian banks have also shown interest in opening offices in the Qeshm free areas in the Persian Gulf.

Short URL : http://goo.gl/B5OJsx
  1. http://goo.gl/1gtkXZ
  • http://goo.gl/MK2EzS
  • http://goo.gl/fgRn16
  • http://goo.gl/khUHe1
  • http://goo.gl/f8bTfG

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...