Karafarin Bank was initially established as Karafarinan Credit Institution. It is the first truly privately-owned bank in Iran established since the 1979 Revolution.
The formation of Karafarin Bank was mainly the outcome of an economic collaboration between participating parties from the Iranian Association of Industry Managers,the Association of Construction Companies, the Association of Utility and EquipmentCompanies, the Iranian Society of Consulting Engineers, the Society of Consulting Architects and Urban Planning Engineers, a select group of prominent Iranian banking experts and the general public.
The Bank was originally established as a non-bankcredit institution with a fully paid-in capital of IRR 30 billion. It was registered on December 9, 1999 under registry number 157915 at the Tehran Companies’ Registrar Office as Karafarinan Non-bank Credit Institution.
The Bank operated as a generalcredit institution and its activities were subject to the Credit Institutions’ Activities Regulation. Following the enactment of the Non-state Bank Establishment Act in 10 April 2000 and the implementation of its relevant requirements, in light of the clear advantages of banking activities to those of credit institutions, the Board of Directorscarried out necessary actions and laid the foundations needed for a restructuring.
It was such that based on an operating licence issued on 5 December 2001 by the Central Bank of Iran, Karafarin Bank was officially established on December 26, 2001 with a fully paid-in capital of IRR 200 billion as a commercial bank that engages in allsegments of banking activities.