The governor of the Central Bank of Iran said on Monday Iran’s banking relationship with the outside world is incomparable with what it was before the nuclear deal was reached between Iran and word powers, which is formally known as the Joint Comprehensive Plan of Action.

After a meeting with the members of Majlis Economic Commission, Valiollah Seif further said in an interview with ICANA, the parliamentary news website, that although restrictions imposed by the US continue to pose an obstacle, Iranian banks are actively engaged with the world.

“The US market is the one with a big volume and that market presents our negotiating party with a choice whether to choose Iran or the US,” he said.

Although the EU and United Nations sanctions over Iran’s nuclear program were lifted in 2016, the United States still has separate measures in place over Iran’s missile program, and the new US administration has promised a hard line.  The risk of falling afoul of US measures has persuaded western banks to steer clear of Iran.

Seif, however, conceded that Iranian lenders also suffer from structural problems that have developed in the past 12 years, during which Iran was cut off from the global financial sector.

According to the CBI chief, these issues include anti-money laundering standards, rules for combating the financing of terrorism and Basel Capital requirements .

Iranian banks were weakened during the sanctions years by a sluggish economy, government interference in lending decisions, lax regulation and excessive competition with unlicensed financial institutions. Authorities are now working to deal with high amounts of bad debts.

He noted that his discussions with lawmakers has also centered on measures adopted in the foreign exchange market and CBI’s recent package to end the recent volatility.

According to Seif, some lawmakers had complained about the CBI failure to discuss the package with lawmakers before releasing it.

Source:

2018, Seif Banking Relations a Far Cry From Before JCPOA, Tuesday, March 6, p.1,<https://financialtribune.com>