Economy, Business And Markets

Bankers Warned Against Unhealthy Competition

Bankers Warned Against Unhealthy CompetitionBankers Warned Against Unhealthy Competition

Governor of the Central Bank of Iran Valiollah Seif has urged bankers to restrain themselves from indulging in “illusory competition” when engaging in international transactions in the post-sanctions era.

“It’s only natural for banks to compete against each other for entering global markets but they should not do it in a way so the other side gets the wrong signals,” Seif said in an address to a gathering of bankers at CBI’s building in northern Tehran late Saturday.

Seif also called on commercial banks not to venture into practices not allowed by the articles of the Joint Comprehensive Plan of Action, urging them instead to focus on reopening their overseas branches.

The 14 July agreement to lift economic sanctions in trade over Iran’s pledge to limit its nuclear energy program was unanimously approved by the UN Security Council, and also by the EU, on July 20, paving the way for Iranian banks to rejoin the international electronic payment system SWIFT, from which they had been cut off under the nuclear-related sanctions.

 Concerted Action

Seif asked bank CEOs to first and foremost comprehend the details and scope of JCPOA, recommending that they come up with a careful plan of action without losing time.

He said: “It would be becoming that from the very start, everything moves forward according to the plan so that no banks face any issues. It goes without saying that the CBI backs any efforts by lenders to expand their ties with other countries and upgrade their banking system by utilizing the latest technology.”

The top monetary policymaker also demanded that bankers update their knowledge on the latest changes in international banking rules as soon as possible.

Seif reiterated that all the frozen assets belonging to the Iranian government and individuals and companies will be freed once JCPOA is enacted.  “Banks will also have the authority to conduct all sorts of business overseas once the agreement comes into effect,” he said.