Iran-owned bank to be set up in Azerbaijan
Bank Melli Iran is planning to establish a new bank
in Azerbaijan with its own investments, its Board Chairman and
Managing Director, Mahmoud Reza Khavari, said during a visit to
Baku on Monday.
"These plans are related to the projections of bringing the trade turnover between Azerbaijan and Iran to $10 billion," Khavari said. "We decided to establish a new bank to achieve these goals."
The Azerbaijani-Iranian annual volume of trade currently does not exceed $700 million.
A branch of Bank Melli Iran has been operating in Baku since 1993.
According to Khavari, the share of Bank Melli Iran’s assets presently accounts for 30 percent of the total assets of Iranian banks.
"Today, discussions were held during a meeting with the chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov on the issue of establishing a new bank, which was positively assessed by the CBA head," Khavari said. "And we intend to officially apply to the Central Bank for a license on Tuesday or Wednesday."
According to Khavari, the new financial institution will be an Azerbaijani bank with 100 percent Iranian capital. The new bank will open subsidiaries not only in Baku, but also in other major cities of Azerbaijan, as well as in the towns bordering on Iran.
"Setting up such a bank will help to simplify monetary exchange between Azerbaijan and Iran," said Khavari.
The bank will begin operation with a minimum capital of $50 million. However, he said, by opening accounts and for the purpose of expanding credit operations, its capital could be increased to meet the needs of Azerbaijan.
"Most likely we will keep the Baku branch of Bank Melli Iran, but the new bank will enter the domestic market with a title suitable for the country," said Khavari.
Currently, 47 banks are operating in Azerbaijan, including 23 with foreign capital.
Bank Melli Iran has been operating for 85 years, and the number of its employees amounts to 50,000.
"These plans are related to the projections of bringing the trade turnover between Azerbaijan and Iran to $10 billion," Khavari said. "We decided to establish a new bank to achieve these goals."
The Azerbaijani-Iranian annual volume of trade currently does not exceed $700 million.
A branch of Bank Melli Iran has been operating in Baku since 1993.
According to Khavari, the share of Bank Melli Iran’s assets presently accounts for 30 percent of the total assets of Iranian banks.
"Today, discussions were held during a meeting with the chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov on the issue of establishing a new bank, which was positively assessed by the CBA head," Khavari said. "And we intend to officially apply to the Central Bank for a license on Tuesday or Wednesday."
According to Khavari, the new financial institution will be an Azerbaijani bank with 100 percent Iranian capital. The new bank will open subsidiaries not only in Baku, but also in other major cities of Azerbaijan, as well as in the towns bordering on Iran.
"Setting up such a bank will help to simplify monetary exchange between Azerbaijan and Iran," said Khavari.
The bank will begin operation with a minimum capital of $50 million. However, he said, by opening accounts and for the purpose of expanding credit operations, its capital could be increased to meet the needs of Azerbaijan.
"Most likely we will keep the Baku branch of Bank Melli Iran, but the new bank will enter the domestic market with a title suitable for the country," said Khavari.
Currently, 47 banks are operating in Azerbaijan, including 23 with foreign capital.
Bank Melli Iran has been operating for 85 years, and the number of its employees amounts to 50,000.
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