A senior official with Germany’s Deutsche Bank said the transaction bank will remain tentative in its financing business with Iran despite the removal of anti-Tehran sanctions.
“We remain extremely reserved when it comes to Iran,” said Werner Steinmueller, the head of Deutsche Bank’s Global Transaction Banking unit, referring to the difficulties in working with Iranian banks.
“We have become more cautious,” he added.
Steinmueller further said that the bank expects to see strong growth in Asia for its global payments and trade financing business in the coming years.
“Within the transaction bank, the share of revenue coming from Asia could rise to a quarter in the coming years from 18 percent now,” Steinmueller said.
European banks’ conservatism and wait-and-see approach comes from the fear they could face US legal action if they move to reestablish links with Iran.
Based on the Joint Comprehensive Plan of Action (JCPOA) – a lasting nuclear deal between Tehran and world powers- Washington has agreed to lift “secondary sanctions” related to Iran’s nuclear program but its “primary sanctions” linked to baseless terrorism and human rights accusations still remain in place.
Several Iranian officials have warned European banks that they might miss out on opportunities provided by the lifting of sanctions if they continue to dawdle on returning to the country.
Deputy Foreign Minister Majid Takhtravanchi said back in March that European banks are overcautious in forging renewed connections with Iran, warning that they “will fall behind under the new situation.”
(Source: Tasnim, under Creative Commons licence)