CBI announces conditions to establish branches of foreign banks in Iran
Tehran, Iran, Nov.26
Central Bank of Iran (CBI) announced the required capital to establish branches of foreign banks in the country, through an executive order, Tasnim News Agency reported.
According to the instructions of the Iran`s Central Bank, the required capital of establishing a foreign bank branch in Iran is at least 10 million euros for the branch type I and 5 million euros for the branch type II.
Referring to the differences between types of foreign bank`s branches, the CBI says through a new regulation, branch type II is not allowed to receive deposits in any circumstances. The branch type I is also not allowed to accept deposits until one year after the beginning of its mission in Iran.
“After the deadline, with the approval of the central bank, it is allowed to accept a deposit of interest for a period of two years. At the end of the above mentioned period, with the approval of the central bank, it can take all kinds of deposits,” the CBI bill noted referring to the conditions of opening a type I foreign banks branch.