Iran aims to boost int’l banking cooperation: Seif

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On November 18, 2015, Posted by , In News, With No Comments

The Governor of the Central Bank of Iran Valiollah Seif stressed CBI is ready to widen its global banking cooperation as soon as the sanctions are lifted, IRNA reported on Wednesday.

Addressing a high-profile international investment conference on Iran in Frankfurt, Seif said a major focus of the CBI was on re-integrating Iranian banks in the global financial markets, especially restoring ties between Iranian and European banks.
We hope ‘to build a long and progressive relationship with our global banking partners,’ he added.
It is our profound belief that solely short-term interactions between Iran and its global partners are not very beneficial. Having a long-term outlook is an essential element for investment in Iran’s banking sector, Seif reiterated.
The CBI chief the Iran nuclear deal has created positive sentiments among international companies looking to return to Iran, especially when it comes to financial institutes.
Our obligation to financial institutes is to provide an environment that is conducive to market entry, encouraging financial stability, longevity and investor protection, Seif said.
At present international investors are permitted to have a 100 percent ownership share at any bank located in a free-zone and 40 percent in mainland, he added.
In a bid to facilitate trade, Iran will pave the way for establishing cross-border joint bank ventures, Seif noted.
He highlighted the point that Iran’s banking system has a banking relationship with 27 Germans banks.
Seif pointed to CBI initiated reforms, saying it was directed at boosting financial stability, effectiveness of monetary policy and efficient allocation of resources in the banking sector.
The government remains committed to a more disciplined and transparent fiscal and monetary policy geared at promoting growth and tackling high inflation, Seif reiterated.
He referred to successful economic polices by lowering inflation from 40 to 13 percent, saying it led to greater stability in foreign exchange markets.Iran’s top banking official vowed to further reduce inflation in an effort to furtherstabilize the Iranian market.
Focusing on Iran’s economic growth, Seif said the three percent growth rate was wellbelow its potential, saying his country had the capacity of reaching eight percent growth within five-year development program.
Iran’s sizable economy with a GDP that ranks among the 20 largest economies in the world and second largest in the Mideast, is a lucrative target for the international financial and banking industry, according to Seif.

Nov 18

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