Iran plans to lift restrictions on foreign bank setup

Tehran, Aug 4, IRNA – Valiollah Seif, governor of the Central Bank of Iran, said on Monday that Tehran plans to lift restrictions on establishing foreign banks in the country.

‘There is no limitation for setting up foreign banks in the free trade zones and they can establish independent banks and branches there, but setting up an independent bank faces certain restrictions in the mainland,’ Seif said during a meeting with the members Tehran Chamber of Commerce, IRNA reported.
‘According to the foreign investment law, foreigners could have 40 percent of an independent bank [shares]. Foreign investors prefer to have Iranian shareholders to develop their banking activities,’ he said.
Seif added said the government ‘is determined to remove restrictions on establishment of foreign banks’.
In the recent visit by a high-ranking German delegation to Tehran, the green light was given to the Western country to establish a bank in Iran, the CBI governor revealed.
On July 19, a 100-strong German delegation headed by Vice-Chancellor and Minister for Economic Affairs and Energy Sigmar Gabriel visited Tehran and met with top Iranian officials.
The visit came after Iran and the P5+1 group reached a nuclear deal on July 14.
Experts believe that Iran’s economic growth would rise remarkably after the final nuclear deal takes effect.