The removal of sanctions against Iran is expected
to commence next year, and would benefit local banks almost
But foreign financial institutions would be slower
to take advantage, due to stringent internal compliance
procedures and the continuation of US sanctions that fall
outside the scope of this
month’s historic nuclear
"The nuclear deal is just a
nuclear deal – it is to prevent a nuclear weapon, but
everything else is very much the same," said BBVA economist
Marcial Nava Ponce.
"Even though this would revive
economic activity in Iran, I think that foreign companies and
in particular financial services firms will be very, very
cautious in how they start doing business again in the
country," he added.
Foreign banks that do want to re-enter the Middle
East’s second biggest economy may have a hard time
convincing local authorities. But they could have an advantage
because the country’s fragmented...