Iran has its eyes set on Turkish banks
Bank Mellat, which has been in Turkey since 1982, faced restrictions in 2012 which led to a decline in its growth due to economic sanctions imposed against Iran.
After growth restrictions were removed on one Iranian bank already doing business in Turkey, two more have been approved to open branches in the country, Turkish news outlets reported on Tuesday.
Bank Mellat, which has been in Turkey since 1982, faced restrictions in 2012 which led to a decline in its growth due to economic sanctions imposed against Iran. However, the Banking Regulation and Supervision Agency (BDDK) approved expansion requests from Bank Mellat last month in light of the U.S. and the UN Security Council loosening economic sanctions after headway was made in negotiations regarding the curbing of Iran's nuclear program.
Afterwards, applications from the Iranian banks Pasargad and Tejarat to set up shop in Turkey were approved by the Ministry of Foreign Affairs.
Bank Mellat has operated in Turkey through its three branches in Izmir, Istanbul and Ankara. Turkish news outlets reported last week that Turkey and Iran had come to an agreement allowing an increase in banking transactions between the two countries.
Earlier this year, Turkish Prime Minister Recep Tayyip Erdogan said that he considered Iran to be “his second home” during a visit to Tehran aimed at strengthening economic ties between the neighboring countries.
- Understanding the ripple effect: 8 reasons the US economy has slowed down in Q1 of 2015
- Can Bahrian emerge from the oil price plunge 'stronger than ever'?
- Egyptian stocks plummet as Yemen confict deepens
- UAE sweetens flotation regulations to attract more investment
- Replacing Switzerland? Why Lebanon isn't keeping its banking secrecy a secret