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However, in Ankara US requests have not been responded to in a similar way, according to officials.

Stating that foreign banks operate according to the regulations set by the current Banking Law and are inspected periodically, the official underlined that the conditions of suspending one bank¡¯s operations are clear.

¡°Obviously we cannot move upon a third party¡¯s requests,¡± he said.

Although some banks in Europe and Japan have bowed to US pressure, a host of analysts and diplomats believe that the move has proved futile.

They opine that the Bush administration¡¯s controversial policy of slapping sanctions on Iranian banks is facing a critical challenge, as financial institutions in Russia, China, and much of the Middle East have declined to cut ties with Iranian banks.

AO/JG/PA


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