Top Japanese Banks Avoid Iranian State Bank

Placards at a demonstration in Tehran in support of Lebanon during its recent conflict with Israel (Fars) September 16, 2006 -- Three leading Japanese banks have reportedly decided not to do business with the state-run Iranian bank Saderat Iran.

Japan's Kyodo news agency says the Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, and Mizuho Corporate Bank are in effect adhering to a ban placed on U.S. companies by the U.S. government.

Washington banned U.S. banks from dealing with Bank Saderat Iran on the grounds that it believes the bank had channeled funds to the Lebanese military and political movement Hizballah.

(AP)