Iran Declares Major Private Bank Bankrupt Amid Deepening Financial Strain
The collapse of Ayandeh Bank exposes deep cracks in Iran’s financial system, with experts warning more failures could follow amid sanctions and weak oversight.
ERBIL (Kurdistan24) — Iran has declared on Saturday one of its largest private banks, Ayandeh Bank, bankrupt, with its assets absorbed by the state-owned Melli Bank, marking one of the most dramatic collapses in the country’s modern banking history. The move comes as Tehran grapples with renewed international sanctions and mounting economic instability.
Founded in 2012, Ayandeh Bank once operated 270 branches nationwide—150 of them in Tehran—but had recently been crippled by mounting debt.
According to Iran’s ISNA news agency, the bank’s accumulated losses had reached the equivalent of $5.2 billion, with debts of roughly $2.9 billion.
On Saturday, long lines of anxious depositors formed outside the bank’s shuttered branches in Tehran, with police deployed to maintain order.
State television quoted Melli Bank director Abolfazl Najarzadeh confirming that “the transfer from Ayandeh Bank to Melli Bank is now complete,” assuring customers their deposits would be protected.
Iranian Economy Minister Ali Madanizadeh attempted to calm public fears on Thursday, saying customers “had nothing to worry about.” However, Central Bank officials blamed “bad debts” and risky self-financing projects for the collapse.
Central Bank representative Hamidreza Ghaniabadi told the IRNA news agency that over 90 percent of Ayandeh Bank’s funds were lent to affiliated entities or bank-managed projects that failed to generate returns.
Among its most extravagant ventures was the Iran Mall—one of the world’s largest shopping centers—complete with cinemas, luxury stores, and an ice rink.
The failure of Ayandeh Bank underscores the fragility of Iran’s financial system, heavily burdened by mismanagement, corruption, and years of sanctions that have isolated the country from international markets.
Several other private and semi-state banks—including Sarmayeh, Day, Sepah, Iran Zamin, and Melal—are reportedly facing severe liquidity challenges.
The crisis unfolds against the backdrop of renewed United Nations sanctions, reimposed in September after months of fruitless diplomacy aimed at reviving the 2015 nuclear agreement.
Those sanctions—referred to as a “snapback” mechanism—were reinstated following Israeli and U.S. strikes on Iranian nuclear sites in June, further tightening the economic noose around Tehran.
Economists say the banking sector’s instability reflects broader structural weaknesses in Iran’s economy, where inflation exceeds 40 percent and the national currency continues to plummet against the US dollar.
Observers from the industry warn that more bank failures could follow unless authorities enforce stricter financial oversight and attract foreign investment—both unlikely amid current geopolitical tensions.
