In an interview with the Financial Times, Hamid Borhani said that of 600 foreign banks that used to do business with Bank Saderat before the U.S. imposed sanctions in September 2006, some 200 had halted their transactions.
Borhani said that Middle Eastern banks were continuing contacts and becoming the institutions top foreign partners, as sanctions shifted trade from west to east. China became Irans main trade partner last year, while much trade is being conducted through the reexport hub of the United Arab Emirates.
Bank Saderat is the second largest bank domestically in terms of assets and probably the most active Iranian bank outside the country, according to the FT.
The FT said that recent figures from Bankers Almanac, which provides reference information for the industry, the number of Saderats correspondent banks has declined from 29 in August 2006 to eight, two of which are Saderat subsidiaries. Correspondent banks are banks that agree to perform services for other banks in inaccessible markets.
The trend line is in the right direction but it hasnt yet gone to zero, where it should be, said a senior U.S. official.
Borhani said the banks 25 operations outside the country, including a subsidiary in London, Washingtons closest ally, continued their operations. He estimated profits were up about 25 per cent in 2007, compared with a 30 per cent rate of growth the previous year.
