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Iran to Set Up First Private Bank
Iran will set up its first private bank in the eastern city of Birjand, the Islamic Republic News Agency reported Tuesday, January 2.
Quoting Mehdi Ayati, representative of the city to the parliament, the report said that the bank will be established as an investment center to contribute to local development.
By opening branches both inside and outside the country as well as engaging in foreign exchange transactions, the Birjand Bank will certainly be a success, it added.
According to local officials, the formation of the bank will contribute to the improvement of the region's economy and solve many problems arising from lack of sufficient credits.
The new bank will also pave the way for investing in various production and industrial sectors of the region.
The report said that a seven-member interim board of governors of the bank has been elected and it is expected to begin operation in the near future.
After the 1979 Islamic revolution, all private banks in Iran were nationalized and their ownership was transferred to the public sector. But recently green light has been given for setting up private cooperative banks.
According to the Iranian Constitution, Iran's economy includes the public, private and cooperative sectors.
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