2020 was a year which will remind our future generation of the vicissitudes the current generation underwent. Covid-19 overshadowed remarkable achievements of human being all across the world in 2020. The Iranian community was no exception in facing this rampant pandemic virus, which has left almost all of us losses of some of our beloved ones. As an old saying goes, “there is always light at the end of the tunnel and a reason to smile”, I hope indeed the current situation gets eased and things get back to normal in the foreseeable future. One of the things IVBB did in 2020 to contribute to the betterment of the situation was to donate medical devices required to act better and more efficiently against this pandemic to some health centers across the country. We strongly believe in our role, in the corporate citizenship context, as part of our society and did all what we could afford to make the world a better place to be.
Regardless of the stagnancy and sluggishness imposed by the pandemic on economies, both at national and at international levels, IVBB had a good performance in the banking sector in Iran. We managed to finance quite many businesses with different scales and functions in the country and grant various facilities to our customers, corporate and personal. IVBB stood among the top banks in Iran and we could not have achieved so had we not had the diligence, sedulousness, and perseverance of our colleagues in the bank. In 2020, IVBB experienced a dramatic increase in attracting customers, both personal and corporate. By having a more active strategy in marketing and also offering different competitive services, IVBB managed to have more customers referring to the bank for different services. The following graph shows the efficient risk management deployed in IVBB to overcome potential financial stress. The minimum ratio of capital to risk-weighted assets is 10.5% under Basel III. The capital adequacy of IVBB as of 2020/03/20 was 16%, which verifies its full financial readiness against any sort of financial shocks.
Digitization and Platformification
There is much to talk about what happened in IVBB in 2020, but one point is noteworthy, we did what was in our power, and sometimes beyond, to enable our clients to enjoy a full-fledged environment with top-notch and cutting-edge services. We could review and modify our business model in order to digitize our entire processes in the near future. This will hopefully be implemented through some locally-developed systems while staying compliant with both internationally accepted standards adopted from Basel Committee reports and also nationally mandated banking principles. Instead of physical development of the bank branches, we are to extend and diversify our electronic services through platformification. For instance, KYC will fully be done electronically and credit assessment is to be carried out on an electronic platform developed by our local partners.
In addition to observing the entire corporate governance principles in the banking sector, we have established two independent departments pertinent to compliance, AML, CFT, and risk management. We have been successful in being fully compliant with international banking principles and this could be proved by the number of legal complications IVBB faced in 2020, which was virtually no important case.
Although the international restrictions were the main hurdle preventing us from international activities, we are firmly determined to expand our international cooperation and partnership with our potential peers and international clients. We are fully ready and have already prepared the required domestic and international infrastructures to enter into banking relations with other banks in terms of underwriting documentary credits and guarantees or jointly working on FX fields.
On behalf IVBB, I would like to thank all our clienteles as a vital part of our community for adding value to our bank to stay on the top of the list of the banks well-known across the world in terms of effective performance in financing projects and assisting individuals to grow.