Following the Islamic Revolution, Iran's banking system was transformed to be run on an Islamic interest-free basis. As of 2010 there were seven large government-run commercial banks. As of March 2014, Iran's banking assets made up over a third of the estimated total of Islamic banking assets globally. They totaled 17,344 trillion rials, or US$523 billion at the free market exchange rate, using central bank data, according to Reuters.
Since 2001 the Iranian Government has moved toward liberalising the banking sector, although progress has been slow. In 1994 Bank Markazi (the central bank) authorised the creation of private credit institutions, and in 1998 authorised foreign banks (many of whom had already established representative offices in Tehran) to offer full banking services in Iran's free-trade zones. The central bank sought to follow this with the recapitalisation and partial privatisation of the existing commercial banks, seeking to liberalise the sector and encourage the development of a more competitive and efficient industry. State-owned banks are considered by many to be poorly functioning as financial intermediaries. Extensive regulations are in place, including controls on rates of return and subsidized credit for specific regions. The banking sector in Iran is viewed as a potential hedge against the removal of subsidies, as the plan is not expected to have any direct impact on banks.
HOMASA Financial Services, Operations, Compliance, Outsourcing and Technology
The financial services sector is emerging from the most significant economic crisis in recent history. As the dust begins to settle, one thing is clear: “business as usual” will be anything but. Homasa is a recognized and respected advisor to many leading financial organizations looking for both advisory as well as event driven services inside Iran. Homasa Financial Services experts work closely with clients to develop sound operations, risk management, distribution and compliance strategies to ensure they are well-positioned to anticipate and take advantage of the changes ahead.
Leveraging our broad network of professionals, Homasa offers services to financial services companies that span from risk management to litigation support. In complex disputes and high stakes investigations, our professionals provide expert services in accounting, economics, regulation and data and discovery management. This comprehensive service offering helps clients gain operational efficiencies, manage risks, and improve financial performance.
Homasa's Financial Services consulting practice works collaboratively with banking, insurance, and investment management clients to achieve their business objectives by improving operational effectiveness and mitigating compliance risks. Our comprehensive service offering focuses on our clients’ key opportunities and challenges including core business operations, technology, human capital, regulatory compliance, strategic transformations, customer service, and business process outsourcing (BPO). We bring deep industry, consulting and technical expertise, and are known for partnering with our clients to realize their business objectives.
We provide the following services to the Banking,Insurance, and Investment Management sectors in Iran:
- Accelerated Outsourcing
- Design and delivery of cost-efficient operating models based on Lean Six Sigma principles
- Distribution strategy design and delivery
- Technology selection and implementation
- Financial risk management
- Change management
- Strategic compliance strategy and program development and evaluation
- Merger and divestiture support
- Risk, Compliance and Control
- Unclaimed Property