The largest banking event of the year was held at Tehran’s iconic Milad Tower on Monday. This event centered on financial technology and innovative solutions to succor an economy which is in a dire need to reform. The entity in charge of organizing such major event is Ali Divandari, director of the Monetary and Banking Research Institute. A large number of high-level officials, industry players and local and foreign experts are attending the Seventh Conference on Electronic Banking and Payment Systems.
The ever-increasing importance of fintechs and the boons they bring for consumers are the main points of the meeting. This year’s conference is focused on promoting innovation and optimizing efficiency in financial businesses. In line with this subject, Governor of the Central Bank of Iran Valiollah Seif, called on bank executives and board members to develop a comprehensive understanding of financial technology and block chain innovation.
Communications Minister Mohammad Javad Azari Jahromi was one of the top-tier speakers of the event as well. He warned that the monopoly in payment systems effects market expansion in a detrimental way. He also called the administration’s commitment to combating digital and cyber fraud. He also announced that in a month with collaboration of ministries of economy and industries and central bank, the strategic blueprint of digital economy will be submitted to the parliament. Jahromi promised granting of a bigger role to a digital economy in the government’s plans for the fiscal 2018-19 that begins on March 21.
Digital Banking and Fintechs
Another keynote speaker of the event was the head of CBI’s Innovative Technologies Department. He determined the policies of the monetary regulator in financial innovation and technology. He outlined that the central bank has planned six documents in three phases to provide “regulatory frameworks”. He mentioned that they do not seek just some rigid regulations, but the want to take stance on fintechs and cryptocurrencies. Two of the mentioned documents dealing with payment initiators and facilitators have already been published. The rest of them will be disclosed publicly by the end of next year’s second quarter on Sept. 22. On this subject, the industry players’ feedback will absolutely be considered.
The annual conference had a number of other roundtables which discussed on Europay, Mastercard and Visa technology, open banking and conformity to international standards. In this event, some scientific research articles were also presented. The major subjects were about Banking supervision, confidentiality of information, automation systems, anti-money laundering and combating the financing of terrorism laws and global banking trends.
On Sunday, top officials from the Central Bank of Iran and Turkey had a meeting in Tehran. Along with senior bankers, they had a high level talks to discover a new way of developing banking relations. One of the measures of the central banks of both countries is the currency swap agreement, which recently signed between Iran and Turkey.
This agreement is a very appropriate way to continue and increase cooperation. It is expected after the infrastructures are set in place, the implement procedure will be commenced as soon as possible. After rounds of negotiation, the officials of two countries’ central banks finally agreed on conducting bilateral trade in local currencies. Regarding to the agreement, both parties allocated a credit of 5 billion Lira and its equivalent in Rial to their agent banks. Bank Melli Iran and Ziraat Bank are the respective agent banks which such credit allocated to them. Both countries’ traders can use this credit as letters of credit with a repayment period of one year.
Based on this agreement, the payment tools such as letters of credit and remittances will be issue in the local currency. The traders will no longer need to use intermediate currencies. By such method the costs for both countries’ traders will reduce.
The future goal between two countries is connecting their bank cards. This movement allows their citizens to benefit from mutual electronic banking services and facilitate tourism.
Development of Strategic Relations
Referring to the longstanding history of trade between two countries, the expansion of the ties is very important. The implementation of the currency swap agreement is a step toward such aim. The CEO and other top-level executives of Ziraat Bank and Halkbank participated in the meeting. In addition to stating their opinion about the currency swap agreement, they expressed their willingness to improve the correspondent banking relations with their counterparts.
TEHRAN , Oct.20 (FNA)- Iran’s Minister of Industry, Mine and Trade and Turkish Economy Minister in a meeting in Ankara voiced their countries’ preparedness to further expand bilateral relations, specially in the technical and engineering fields.
During their meeting, the two ministers, who also serve as special representatives of the presidents and chairmen of the economic commission in their own countries, discussed promotion of economic and trade collaboration in a bid to achieve the 30-billion-dollar goal set for the volume of trade exchanges between the two neighboring nations.
The documents and Memoranda of Understanding (MoUs) which were endorsed in the presence of Iranian President Hassan Rouhani and his Turkish counterpart Recep Tayyip Erdogan are related to the two countries’ customs and banking ties as well as cooperation between their national libraries and state TV and radio organizations.
Minister of Economic Affairs and Finance Masoud Karbasian met with top-ranking officials of the Islamic Development Bank as well as his counterpart from Malaysia.
In the present membership of the bank, which consists of 57 countries, Iran ranks third with a total share of 8.25% and stands behind Libya and Saudi Arabia that respectively hold 9.43% and 23.50% of shares. The basic condition for membership is that the prospective member country should be a member of the Organization of Islamic Cooperation.
In the meeting with IDB officials, Karbasian called on them to consider the rights of all member states and pointed to the multilateral development bank’s special standing in the region.
Karbasian talked about ways through which the Iranian private sector will be able to enjoy facilities offered by IDB and it was decreed that both sides would negotiate further when an IDB delegation travels to Iran in the foreseeable future.
Tehran, Oct 16, IRNA – Central Bank of Iran (CBA) and the Export Insurance Agency of Russia (EXIAR) signed a financing memorandum of understanding (MoU) on Sunday.
The MoU was signed in a meeting between Deputy CBI for currency affairs Ahmad Araqchi and Managing Director of EXIAR Alexey Tyupanov in Moscow
During the meeting, both sides agreed on the outlines of a deal between the Iranian and Russian banks, which will allow the Iranian banks to receive finance from Russian banks for the projects which have obtained needed permissions in Iran.
The financing deal will soon be signed and implemented by the Iranian and Russian banks.
TEHRAN,Sep.27 (FNA)- Cypriot President’s Chief of Staff Michalis Sofokleous in a meeting with his Iranian counterpart Mahmoud Vaezi underlined his country’s willingness to expand banking relations with Tehran.
“We are interested in fully activating banking ties with Iran as a ground to develop relations in other fields,” Sofokleous said during the meeting in Tehran on Tuesday evening.
“Cyprus is willing to expand relations with Iran in economic, trade, scientific, academic, tourism and cultural fields,” he added.
Vaezi, for his part, described banking cooperation as a necessary ground to broaden economic relations, and said, “The Islamic Republic of Iran welcomes development of ties and cooperation, specially between the two countries’ economic activists and private sectors.