Bank Refah
Encyclopedia
Bank Refah Kargaran, also known as Bank Refah بانك رفاه, is one of Iran
's major state owned banks. Bank Refah, with its headquarters in Tehran, Iran, is a retail commercial bank owned and controlled by Iran's Ministry of Welfare and Social Affairs
. Bank Refah provides a full range of products and services to more than a million clients. Its SWIFT
address is REFAIRTH.
, the bank’s ownership was transferred to the government. It was also recategorized as a commercial bank.
's 1959 fiscal budget, Bank Refah’s initial capital was 400,000,000 Iranian Rial
s (just over US$5.7 million) fully funded by the Iranian Social Welfare Organization. Although the bank was nationalized in 1979, its management was returned to the Social Welfare Organization (now known as the Ministry of Welfare and Social Affairs) in 1993. In March 2001, the bank’s capital was raised to Rls 1,961 Billion (approximately US$250M) of which close to 94 percent was paid by the Iranian Social Welfare Organization. The bank currently owns a subsidiary in Belarus
, known as Onerbank
must follow the banking principles and practices described in the Islamic banking
law of Iran
passed in 1983 by the Islamic Majlis of Iran
. According to this law, banks can only engage in interest
-free Islamic transactions (interest
is considered as usury
or riba
and is forbidden by Islam
and the holy book of Quran). These are commercial transactions that involve exchange of goods and services in return for a share of the assumed "profit". All such transactions are performed through Islamic contract
s, such as Mozarebe, Foroush Aghsati, Joale, Salaf, and Gharzol-hassane. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines.
In July 2007 the bank
launched a new banking service named "Gold Coins Deposit Account". Through this new service, Bank Refah's customers can deposit their gold coins into a special deposit account
and in return receive points, which they can then redeem against future loans and credits. The launch of this unique deposit account, which received high publicity in the Iran
ian media
, was marked by a presidential speech by the Iran
ian president
Mahmoud Ahmadinejad.
The bank's CEO Peyman Nouri announced in March 2007 that his bank has been authorized by the Central Bank of Iran to issue international credit card
s.
department in early 1970s. The Data Processing department was equipped with a small IBM
370 Mainframe computer
, which was mainly used for batch processing
of deposit
and mortgage
accounts. The bank
's IT department was later dissolved in 1976 and its staff were moved to the IT division of the Iran
ian Social Security Organization (ISSO). At the time Electronic Data Systems
(EDS) was developing a social security application for ISSO and was also managing ISSO's data center
. After the Iranian Revolution
in 1978, the agreement with ISSO (and EDS) was terminated. Bank Refah stopped using ISSO data center
and reverted back to manual processing. All business units and bank branches were instructed to set up paper-based customer and account ledgers.
A few years later in 1988, then CEO of the bank
, Mohammad Hossein Kazemi Namin, purchased the first Personal Computer
for the bank. He then hired a group of IT professionals and re-established the data processing
division. A year later, he made a significant investment and purchased an IBM
4381 Mainframe computer
from the United Kingdom
. Since then, the bank
's IT division has purchased, developed and implemented several small and large computer
s and software packages
. However, despite the efforts, its IT infrastructure
and system
s are well behind modern western
and regional bank
s. Lack of skilled IT resources, unavailability of high speed data
lines, insufficient investment, poor IT leadership and foreign sanctions have contributed to the slow progress of data processing
in the Iran
ian banks and Bank Refah hasn't been an exception.
In the spring of 2007, Bank Refah opened its first unmanned branch in Tehran
with two ATM
's and four information
kiosks. This bank branch is located at Galoobandak in the vicinity of Tehran's Grand Bazaar
.
Bank Refah has installed over 500 Automated Teller Machine
s (ATM) across its branches in Tehran and other cities. The ATM network is connected to the Iran
ian Shetab network allowing customers to withdraw cash from any ATM in the country.
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
's major state owned banks. Bank Refah, with its headquarters in Tehran, Iran, is a retail commercial bank owned and controlled by Iran's Ministry of Welfare and Social Affairs
Ministry of Welfare and Social Security (Iran)
The Ministry of Welfare and Social Security established in 2004 and dissolved in 2011, was an Iranian government body responsible for the oversight of Social security in Iran.-See also:*Social security in Iran*Health care in Iran*Subsidy reform plan...
. Bank Refah provides a full range of products and services to more than a million clients. Its SWIFT
Society for Worldwide Interbank Financial Telecommunication
The Society for Worldwide Interbank Financial Telecommunication operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions...
address is REFAIRTH.
The workers' bank
Bank Refah was established in 1960 to provide basic banking services to the Iranian workers. Those services included collection of insurance premiums, payment of salaries and pensions, mortgages and personal loans. Bank Refah was categorized as a non-commercial bank until it was nationalized in 1979 less than a year after the Islamic Revolution. With the Nationalization law passed by the Islamic Majlis of IranMajlis of Iran
The National Consultative Assembly of Iran , also called The Iranian Parliament or People's House, is the national legislative body of Iran...
, the bank’s ownership was transferred to the government. It was also recategorized as a commercial bank.
Ownership
In accordance with article 39 of IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
's 1959 fiscal budget, Bank Refah’s initial capital was 400,000,000 Iranian Rial
Iranian rial
The rial is the currency of Iran. It is subdivided into 100 dinar but, because of the very low current value of the rial, no fraction of the rial is used in accounting....
s (just over US$5.7 million) fully funded by the Iranian Social Welfare Organization. Although the bank was nationalized in 1979, its management was returned to the Social Welfare Organization (now known as the Ministry of Welfare and Social Affairs) in 1993. In March 2001, the bank’s capital was raised to Rls 1,961 Billion (approximately US$250M) of which close to 94 percent was paid by the Iranian Social Welfare Organization. The bank currently owns a subsidiary in Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
, known as Onerbank
Islamic banking
All banks in IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
must follow the banking principles and practices described in the Islamic banking
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
law of Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
passed in 1983 by the Islamic Majlis of Iran
Majlis of Iran
The National Consultative Assembly of Iran , also called The Iranian Parliament or People's House, is the national legislative body of Iran...
. According to this law, banks can only engage in interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
-free Islamic transactions (interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
is considered as usury
Usury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
or riba
Riba
Riba means one of the senses of "usury" . Riba is forbidden in Islamic economic jurisprudence fiqh and considered as a major sin...
and is forbidden by Islam
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
and the holy book of Quran). These are commercial transactions that involve exchange of goods and services in return for a share of the assumed "profit". All such transactions are performed through Islamic contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
s, such as Mozarebe, Foroush Aghsati, Joale, Salaf, and Gharzol-hassane. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines.
In July 2007 the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
launched a new banking service named "Gold Coins Deposit Account". Through this new service, Bank Refah's customers can deposit their gold coins into a special deposit account
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
and in return receive points, which they can then redeem against future loans and credits. The launch of this unique deposit account, which received high publicity in the Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
, was marked by a presidential speech by the Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
Mahmoud Ahmadinejad.
The bank's CEO Peyman Nouri announced in March 2007 that his bank has been authorized by the Central Bank of Iran to issue international credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s.
Financial numbers
June 16, 2010 ($1 UD is approximately 10,400 [Iranian Rial](Rls) ):- Total assets = Rls 41,453 billion
- CapitalizationCapitalizationCapitalization is writing a word with its first letter as a majuscule and the remaining letters in minuscules . This of course only applies to those writing systems which have a case distinction...
= Rls 895 billion - Total income = Rls 1,614 billion
- Total loans = Rls 29,441 billion
- Total deposits (short and long term) = Rls 25,719 billion
- Number of branches = 1128
- Number of employees = 9570
- Market shareMarket shareMarket share is the percentage of a market accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful.Marketers need to be able to...
= 6.8% of total deposits and 5% of total loans
Current CEO and directors
- seyed zia Imani, CEO
- jafar safaee mazid
- mohammad javad mohaghegh
- hamid reza mabudian
Previous CEOs
- peyman noori broojerdi
- Mohammad Taghi Jamalian
- Parviz Ahmadi
- Jabbar Saber Khiabani
- Mohammad Hossein Kazemi Namin
- Abdollah Ebtehaj
Significant buildings
- Mofatteh Building — 125 Mofatteh Ave, Tehran
- Pardis Building — 40 Shiraz Shomali, Tehran
Information technology
Bank Refah established its first Data ProcessingData processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
department in early 1970s. The Data Processing department was equipped with a small IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
370 Mainframe computer
Mainframe computer
Mainframes are powerful computers used primarily by corporate and governmental organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.The term originally referred to the...
, which was mainly used for batch processing
Batch processing
Batch processing is execution of a series of programs on a computer without manual intervention.Batch jobs are set up so they can be run to completion without manual intervention, so all input data is preselected through scripts or command-line parameters...
of deposit
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
and mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
accounts. The bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
's IT department was later dissolved in 1976 and its staff were moved to the IT division of the Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian Social Security Organization (ISSO). At the time Electronic Data Systems
Electronic Data Systems
HP Enterprise Services is the global business and technology services division of Hewlett Packard's HP Enterprise Business strategic business unit. It was formed by the combination of HP's legacy services consulting and outsourcing business and the integration of acquired Electronic Data Systems,...
(EDS) was developing a social security application for ISSO and was also managing ISSO's data center
Data center
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems...
. After the Iranian Revolution
Iranian Revolution
The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...
in 1978, the agreement with ISSO (and EDS) was terminated. Bank Refah stopped using ISSO data center
Data center
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems...
and reverted back to manual processing. All business units and bank branches were instructed to set up paper-based customer and account ledgers.
A few years later in 1988, then CEO of the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, Mohammad Hossein Kazemi Namin, purchased the first Personal Computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
for the bank. He then hired a group of IT professionals and re-established the data processing
Data processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
division. A year later, he made a significant investment and purchased an IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
4381 Mainframe computer
Mainframe computer
Mainframes are powerful computers used primarily by corporate and governmental organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.The term originally referred to the...
from the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. Since then, the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
's IT division has purchased, developed and implemented several small and large computer
Computer
A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
s and software packages
Software package (installation)
In package management systems, which are commonly used with Linux-based operating systems, a package is a specific piece of software which the system can install and uninstall....
. However, despite the efforts, its IT infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
and system
System
System is a set of interacting or interdependent components forming an integrated whole....
s are well behind modern western
Western culture
Western culture, sometimes equated with Western civilization or European civilization, refers to cultures of European origin and is used very broadly to refer to a heritage of social norms, ethical values, traditional customs, religious beliefs, political systems, and specific artifacts and...
and regional bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s. Lack of skilled IT resources, unavailability of high speed data
Data
The term data refers to qualitative or quantitative attributes of a variable or set of variables. Data are typically the results of measurements and can be the basis of graphs, images, or observations of a set of variables. Data are often viewed as the lowest level of abstraction from which...
lines, insufficient investment, poor IT leadership and foreign sanctions have contributed to the slow progress of data processing
Data processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
in the Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian banks and Bank Refah hasn't been an exception.
In the spring of 2007, Bank Refah opened its first unmanned branch in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
with two ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
's and four information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
kiosks. This bank branch is located at Galoobandak in the vicinity of Tehran's Grand Bazaar
Tehran's Grand Bazaar
The Grand Bazaar is a historical market situated in the capital of Iran, Tehran. A bazaar is a type of marketplace, although many - such as Tehran's Grand bazaar - fulfill many additional functions rather than merely trade...
.
Bank Refah has installed over 500 Automated Teller Machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s (ATM) across its branches in Tehran and other cities. The ATM network is connected to the Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian Shetab network allowing customers to withdraw cash from any ATM in the country.
See also
- Banking and Insurance in Iran
- Central Bank of Iran
- Privatization in IranPrivatization in IranAccording to the Fourth Five-Year Economic Development Plan , the Privatization Organization of Iran affiliated to the Ministry of Economic Affairs and Finance is in charge of setting prices and ceding shares to the general public and on the Tehran Stock Exchange...
- Economy of IranEconomy of IranThe economy of Iran is the eighteenth largest in the world by purchasing power parity and according to Iranian officials' claims is going to become the 12th largest by 2015. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned...
- Islamic bankingIslamic bankingIslamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
- Social Security Organization (Iran)Social Security Organization (Iran)Social Security Organization is a social insurer organization in Iran which provides coverage of wage-earners and salaried workers as well as voluntary coverage of self-employed persons...