Economy, Business And Markets

Cap for Automakers’ Share in Banks

Cap for Automakers’ Share in BanksCap for Automakers’ Share in Banks

A new plan is being reviewed by Money and Credit Council, which would allow auto manufacturers to own up to 35% of bank shares, said Kourosh Parvizian, Parsian Bank’s CEO. The permission is granted on condition that automakers follow Central Bank of Iran’s rules over lending caps [for shareholders] and providing services [to them],” IBENA quoted him as saying on Tuesday. Privatization law currently allows a single entity to hold approximately 10% of private banks’ shares. The MCC last week required Iran Khodro and SAIPA, major automakers, to sell some of their assets in Parsian in line with the same law.