To the end of fiscal year 2007, IFC's portfolio in Iran includes investments in two banks, a leasing company, and a ceramic manufacturer.
To date, the country has a limited number of private sector banks, which control a small share of the market. The banking sector is still underdeveloped and private banks are rapidly increasing their market share. The current nationalized banking system offers greater scope for private banks to grow, especially as a result of their competitive pricing mechanism and better service quality.
IFC’s investments are expected to have a demonstration effect on other private sector banks due to their improved corporate governance standards, risk management, and anti-money laundering practices.
