foreign banks want iran branches

Another crack in the myths about Iran's hatred of the world and conversely the world's reluctance to invest in Iran

http://www.presstv.ir/detail.aspx?id=9121§ionid=351020102

Central Bank of Iran says dozens of foreign financial institutions have expressed interest in establishing local branches across the country.

Fars news agency reported Tuesday the Central Bank's Monetary and Credit Council has said more than 44 offices of foreign banks, which are currently based in Tehran but allowed to operate only inside Free Trade Zones like Kish island, have expressed their interest to establish local branches throughout the country.

The announcement did not specify the banks by name, but Fars reports the institutions would include five banks from Germany, three from Spain, four from France, six from the UK and three banks from the UAE.

The announcement comes in the wake of a CBI proposal made Sunday that, if ratified, would allow foreign banks to expand their banking operations throughout the country by entering into joint banking ventures with Iranian banks or investment.

The proposals would also allow foreign banks and other outside financial institutions to hold shares of Iranian banks.

The announcement Sunday sparked mixed reactions in Iran, with some members of parliament insisting that foreign banks, if admitted to Iran, must abide by principles of an Islamic banking system, which encourages usury-free banking.

Parliament must now ratify the endorsement by CBI before foreign bank offices can establish their branches in Tehran or across the country.