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 Bank operated as a generalcredit institution and its activities were subject to the Credit InstitutionsAo 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.