MNA – With the possibility of cutting banking relationship between China’s Bank of Kunlun and Iranian traders, Beijing intends to launch a new banking system to continue financial and banking cooperation with the Islamic Republic of Iran.

Establishment of this alternative banking system is underway, so that banking experts of the two countries have thus far held several meetings in this regard.

Given the above issue, China’s Bank of Kunlun has recently announced that it will not guarantee its banking ties with the Islamic Republic of Iran as of the beginning of November due to the US reimposition of sanctions against Iran.

In this respect, Iranian Chamber of Commerce, Industries, Mines and Agriculture based in China in a meeting with Iranian and Chinese officials called for defining their demands within the framework of the new system, provided that problems facing Bank of Kunlun should be removed in this newly-devised system.

At any rate, experts believe that any other cases except setting up a new bank cannot be considered in this comprehensive system, otherwise, other alternatives will be problematic.

Setting up substituted structures by China may last for a long time and for this reason, it is predicted that this new system will be postponed to coming year in 2019.

Chinese Bank of Kunlun is a credit fund which has been designed for exchanging China’s banking transactions with the Islamic Republic of Iran, so that the fund was already put under severe sanctions by the US government due to the continuation of trade and business activities with Tehran.