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Iran return the global banking system will be a long and painful
4/14/15
Iran may be on the verge of re-banking bonds with the world after years of isolation, it is that a return would not be an easy process as the development of the Islamic financial system in a manner will complicate relations with Iranian banks Alojunbah.otani of the problem of non-performing loans of banks and isolated from the global system because of the sanctions imposed on it, which is in dire need to resume work with foreign banks that will represent them the opportunity to work with Iran Kberh.obulg total Islamic banking assets in Iran 17 344 trillion rials until March / March 2014, equivalent to 523 billion dollars in exchange rates in the the free market, according to the latest Iranian central bank data. This represents more than a third of the total assets of Islamic banks in the world - according to Reuters.
However, the weakness of the financial situation of Iranian banks to document and relations with the Iranian government would increase the risks of dealing with it. During the years of isolation banks have developed a system of Islamic finance differs in some respects markedly from the dominant system in other majority countries Amuslimh.orbma make these differences more difficult for foreign banks and even other major companies operating in Islamic banking markets banks in the Gulf and some Southeast Asian countries dealing in Aaran.oukal Nazim pointed Partner Center «Aa.aa» Advisory Islamic Banking «in light of the socio-political situation of market development in Iran to become the banking industry is concentrated by a large margin on the domestic market and stand-alone and directed.»
Perhaps the lifting of sanctions begin in the coming months if reached Tehran and world powers to agree to restrict Iran's nuclear program by June 30 next. This will agree to a substantial increase in trade and investment in Aaran.oukal Ramin spring Managing Director «Turquoise Partners» Investment Tehran-based «There are enormous benefits to the Iranian banks The best revenue has always been of trade finance, letters of credit.» In the Gulf region and Europe Iranian banks' operations Large largely ceased in the past years, such as Bank «ms» branch in the center of Dubai. It is possible that life is returning to these operations if sanctions were lifted.
However, the Iranian banks are not in good condition allows it to exploit another boom. While the government was fighting the sanctions in recent years it has worked to stabilize the banking lending rates below the level of inflation, which exceeded 40 percent in 2013.obulgt loans that are not paid by the owners 17 percent of total loans in 2013 to account for about ten percent of the gross domestic product, according to IMF data Ata.uammelt President Hassan Rowhani, who took power in late 2013 to reduce inflation management strongly banks and helped start the reform of its financial statements. »
Central Bank data show that the proportion of non-performing loans and doubtful debts amounted to 13.2 percent of total loans in March / Amar.gar that is expected to take a full recovery years. The banks may need to raise billions of dollars in new capital through the sale of instruments or shares in order to open up new areas of work Kberh.omn other sources of danger relations between the banking system the government. There Iran in three state-owned banks and five-governmental specialized commercial banks. Although President Rohani announced that he wants to run correctly sector plays a larger role in the economy, many of the nineteen banks that are described as private relations linked to state institutions and banks operate under its influence.
In 1983, Iran passed legislation prevents its banking system fully to the Islamic regime. But a unique system. Although the religious scholars around the world say that Islamic finance prohibits interest payment it is still possible to Iranian banks to conclude transactions based interest, as it keeps accounting standards for traditional banks, according to a study conducted by the Central Bank of Allbeckstani.okhlst study that «all these features It indicates that the Islamic banking in Iran differ significantly from the basic features of Islamic banks in other parts of the world. »used the Accounting and Auditing Organization for Islamic Financial Institutions based in Bahrain based on a large scale in various parts of the world standards body but it is not implemented in Iran.
For example, the Commission banned in 2007 dealing in Islamic instruments using the sale of peace, a type of futures sales contracts. However, the sale of peace in the Iranian market common type of Alskok.orbma such differences make it difficult for the Islamic banks and conventional banks but establishing relationships with Iranian banks and the conclusion of transactions with them, at least in the beginning. And refrain Sharia bodies Gulf banks look for the conclusion of transactions with non-Islamic Iranian Aaranih.oukal banking institutions «the main problems is trading in religion and the use of derivatives. Those two issues are very Makdtan in any Islamic financial system and in Iran we have a very different approach. »
However there are signs that Iran started the development of new channels that will facilitate communication with foreign banks. Last month, an official at the Securities and Exchange responsible for the organization of work in the Capital Market Authority said that the commission is seeking to develop instruments products Bdelh.oukal Majid Zamani, CEO of Bank «Cardin» Investment, based in Tehran-based «Committee Sharia Securities Authority and Exchange operates hard to modify these contracts in addition to developing new contracts are compatible with the law. »
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4/14/15
Iran may be on the verge of re-banking bonds with the world after years of isolation, it is that a return would not be an easy process as the development of the Islamic financial system in a manner will complicate relations with Iranian banks Alojunbah.otani of the problem of non-performing loans of banks and isolated from the global system because of the sanctions imposed on it, which is in dire need to resume work with foreign banks that will represent them the opportunity to work with Iran Kberh.obulg total Islamic banking assets in Iran 17 344 trillion rials until March / March 2014, equivalent to 523 billion dollars in exchange rates in the the free market, according to the latest Iranian central bank data. This represents more than a third of the total assets of Islamic banks in the world - according to Reuters.
However, the weakness of the financial situation of Iranian banks to document and relations with the Iranian government would increase the risks of dealing with it. During the years of isolation banks have developed a system of Islamic finance differs in some respects markedly from the dominant system in other majority countries Amuslimh.orbma make these differences more difficult for foreign banks and even other major companies operating in Islamic banking markets banks in the Gulf and some Southeast Asian countries dealing in Aaran.oukal Nazim pointed Partner Center «Aa.aa» Advisory Islamic Banking «in light of the socio-political situation of market development in Iran to become the banking industry is concentrated by a large margin on the domestic market and stand-alone and directed.»
Perhaps the lifting of sanctions begin in the coming months if reached Tehran and world powers to agree to restrict Iran's nuclear program by June 30 next. This will agree to a substantial increase in trade and investment in Aaran.oukal Ramin spring Managing Director «Turquoise Partners» Investment Tehran-based «There are enormous benefits to the Iranian banks The best revenue has always been of trade finance, letters of credit.» In the Gulf region and Europe Iranian banks' operations Large largely ceased in the past years, such as Bank «ms» branch in the center of Dubai. It is possible that life is returning to these operations if sanctions were lifted.
However, the Iranian banks are not in good condition allows it to exploit another boom. While the government was fighting the sanctions in recent years it has worked to stabilize the banking lending rates below the level of inflation, which exceeded 40 percent in 2013.obulgt loans that are not paid by the owners 17 percent of total loans in 2013 to account for about ten percent of the gross domestic product, according to IMF data Ata.uammelt President Hassan Rowhani, who took power in late 2013 to reduce inflation management strongly banks and helped start the reform of its financial statements. »
Central Bank data show that the proportion of non-performing loans and doubtful debts amounted to 13.2 percent of total loans in March / Amar.gar that is expected to take a full recovery years. The banks may need to raise billions of dollars in new capital through the sale of instruments or shares in order to open up new areas of work Kberh.omn other sources of danger relations between the banking system the government. There Iran in three state-owned banks and five-governmental specialized commercial banks. Although President Rohani announced that he wants to run correctly sector plays a larger role in the economy, many of the nineteen banks that are described as private relations linked to state institutions and banks operate under its influence.
In 1983, Iran passed legislation prevents its banking system fully to the Islamic regime. But a unique system. Although the religious scholars around the world say that Islamic finance prohibits interest payment it is still possible to Iranian banks to conclude transactions based interest, as it keeps accounting standards for traditional banks, according to a study conducted by the Central Bank of Allbeckstani.okhlst study that «all these features It indicates that the Islamic banking in Iran differ significantly from the basic features of Islamic banks in other parts of the world. »used the Accounting and Auditing Organization for Islamic Financial Institutions based in Bahrain based on a large scale in various parts of the world standards body but it is not implemented in Iran.
For example, the Commission banned in 2007 dealing in Islamic instruments using the sale of peace, a type of futures sales contracts. However, the sale of peace in the Iranian market common type of Alskok.orbma such differences make it difficult for the Islamic banks and conventional banks but establishing relationships with Iranian banks and the conclusion of transactions with them, at least in the beginning. And refrain Sharia bodies Gulf banks look for the conclusion of transactions with non-Islamic Iranian Aaranih.oukal banking institutions «the main problems is trading in religion and the use of derivatives. Those two issues are very Makdtan in any Islamic financial system and in Iran we have a very different approach. »
However there are signs that Iran started the development of new channels that will facilitate communication with foreign banks. Last month, an official at the Securities and Exchange responsible for the organization of work in the Capital Market Authority said that the commission is seeking to develop instruments products Bdelh.oukal Majid Zamani, CEO of Bank «Cardin» Investment, based in Tehran-based «Committee Sharia Securities Authority and Exchange operates hard to modify these contracts in addition to developing new contracts are compatible with the law. »
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