End of sanctions offers chance to fix Iran’s banking sector

Complex political situation makes reform more challenging

The Central Bank of Iran

The lifting of sanctions against Iran in mid-January looks set to offer respite to the country's troubled banking system, especially after the Central Bank of Iran confirmed all sanctions-hit banks have now reconnected to the Swift network. But economists believe deep reforms are still needed.

The banking sector has long been suffering from slender capital buffers and a heavy weight of non-performing loans (NPLs). The situation was exacerbated by sanctions, with the exclusion of major banks from

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