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Conditions for Foreigners’ Participation in Establishing Banks in Iran
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Foreign legal entities can establish banks in Iran or participate in buying the stocks up to 40% formally.
Meanwhile, the increase if share purchase ceiling to the foreign banks, up to 40 percent, was approved by the Credit Commission, Management Board and Central Bank.
Based on the new regulations of the bank, buying the shares of the domestic banks by foreign governments or entities was prohibited. Meanwhile, the country’s banks had to receive authorization from the Central Bank in a bid to sell the shares to the overseas legal entities
Likewise, it is announced that the Managing Director, Chairman of the Board of Directors, as well as the board members of the banks with foreign shareholders must be Iranian.
The Central Bank allowed the Iranian banks (with at least 5 years experience and profitably in the past 3 years) applying for funding in foreign banks (branch bank) to invest in the overseas banks.
According to the notified regulations, the minimum capital required for investment of the domestic banks in foreign banks should not be less than 50 million Euros.
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