News / Economy

Iran bank appeals Bahrain Central Bank decision

Monday, 11 May 2015 8:55 AM [ Last Update: Monday, 11 May 2015 8:55 AM ]

The logo of Bahrain-based Future Bank

A Bahrain-based Iranian bank has appealed a recent decision by Bahrain's central bank to place it along with another Iranian financial institution into administration under the pretext of protecting the rights of depositors and policyholders.

“We hereby notify you of our formal appeal against the CBB’s decision to place FB (Future Bank) under administration in accordance with Article 139 of the CBB Law,” Chairman of Future Bank, Abdolnaser Hemmati, said in a letter to CBB, a copy of which was obtained by Press TV.

He was reacting to the Central Bank of Bahrain (CBB)’s April 30 decision on the Future Bank and the Iran Insurance Company.

Based on the CBB Law, the Administrator shall have all the powers necessary for the management and running the business of the entity that has been put under administration and is technically called “the Licensee”.

Accordingly, the CBB in the case of the Future Bank and the Iran Insurance Company will have the power to continue or to temporary suspend their operations, the power to suspend or limit the discharge of their financial obligations, and the power to conclude deals on behalf of them.

Hemmati said, “Ever since its incorporation in 2004, the Bank has been carrying on its business in a transparent, disciplined and professional manner, providing all the information and clarifications wherever required by the BCC and ensuring full compliance to the regularity requirements and framework.”

“We were seriously disturbed and shocked to learn the CBB’s decision,” he said.

The Future Bank was established in 2004 through a joint venture between Bank Saderat Iran, Bank Melli Iran, and Ahli United Bank (AUB) Bahrain.

Valiollah Seif, the current governor of the Central Bank of Iran, was the head of the Future Bank in Bahrain before he returned to Iran in 2010.

Iran Insurance Company in Bahrain is an offshoot of a major Tehran-based insurer that has a network of branches in Iran and paid-up capital of $236 million.

KA/KA

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