Baku, Azerbaijan, May 16
By Fatih Karimov - Trend:
Iran is still negotiating with foreign banks to establish subsidiaries in the country's free zones, said Akbar Torkan, the secretary of the High Council of Free and Special Economic Zones.
The foreign banks have not taken any serious steps so far to open offshore banks in Iran's free zones, Torkan said, ILNA news agency reported May 16.
The foreign investors visit Iran, but only for studying the market conditions, he added.
In a bid to attract foreign investors Iran's Central Bank has revised regulations for foreign bank ownership and activity. This is where Iran's free trade zones come into play.
Foreign banks considering establishing a subsidiary in Iran will, in most cases, require a partnership with a local entity unless they set up in one of free economic zones.
The central bank of Iran requires at least €25 million in capital for establishing banks and €15 million for credit institutions. However, if a foreign credit institution wants to open a branch in one of the zones, it only needs €5 million. The minimum capital can be in any currency accepted by the regulator. The bank can lower the minimum required capital if deemed necessary.
As for foreign ownership of Iranian banks and banking in the mainland, current regulations allow foreigners to jointly hold a 40-percent stake in an Iranian bank. To buy a stake in existing Iranian banks or create a new bank with foreign ownership the central bank has to approve the purchase.
Earlier in March Iranian media reported that Iran's Araz and Anzali free trade zones are in "serious talks" with two banks from the UAE as well as two European and Turkish banks for banking activity in the aforementioned areas.