Economy, Business And Markets

Iran, Japan Seek Closer Banking Coop.

The agreement between CBI and Japan’s Financial Service Agency is aimed at easing banking relations.The agreement between CBI and Japan’s Financial Service Agency is aimed at easing banking relations.

The Central Bank of Iran and Japan's Financial Service Agency signed an exchange of letter on February 12 aimed at easing banking relations and promoting exchange of experience related to supervision. 

The ceremony was attended by the Central Bank of Iran’s deputy for supervisory affairs, Farshad Heydari, a group of CBI executives and representatives from JFSA, including its director for international affairs, Masato Kanda, CBI's website reported.

"Since Iran and Japan have old ties in trade and in view of the capabilities of the two countries, the volume of our trade and business deals should increase," Heydari said, adding that the enhancement of bilateral banking relations is necessary for stronger commercial relations.

"Japan has worked with our banking system on banking supervision training and it is hoped that this cooperation will continue so that our banking system reaches global standards."

The CBI official noted that Japanese bankers should familiarize themselves with Islamic banking to develop their relations with Iran's banking system.

Heydari said Iranian banks are ready to ramp up their ties with Japanese banks.

"Our banks are eager to create correspondent relations with Japanese banks and open branches on Japanese soil as they did in South Korea and China, which led to a jump in their business," he said.

"On the other hand, the CBI welcomes the presence of Japanese banks in Iran, which should be considered as a step toward expansion of trade relations."

Heydari further said the presence of Japanese banks in Iran will not only give them the opportunity to have access to its 80 million-strong market, but it will also facilitate their business in Central Asia and the Caucasus.

FSA's Director for International Affairs Masato Kanda deemed the signing of this exchange of letter highly important.

"The signing of this exchange of letter is a prelude to further exchange of expertise and knowhow in the banking sector and will also lead to memorandums of understanding," he said. 

"Because Japanese banks want to have a presence in Iran, we will see expansion of banking relations."

The Financial Services Agency is a Japanese government organization and an integrated financial regulator responsible for overseeing banking, securities and exchange, and insurance sectors to ensure the stability of the financial system of Japan. 

The agency operates with a commissioner and reports to the minister for financial services. It oversees the Securities and Exchange Surveillance Commission and the Certified Public Accountants and Auditing Oversight Board. Its main office is located in Tokyo.

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