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- Iran’s Central Bank declared Ayandeh Bank bankrupt and transferred its assets to state-owned Melli Bank.
- The bank collapsed under heavy debt and losses estimated at over $8 billion combined.
- The move follows renewed international sanctions that have deepened Iran’s financial strain.
According to official reports, Iran announced the bankruptcy of Ayandeh Bank, one of its largest private financial institutions. The decision marks a rare step in the country’s tightly controlled banking system and comes as Iran faces increasing interest in bitcoin and digital assets amid economic pressure. Authorities confirmed that state-owned Melli Bank has absorbed all assets of the failed bank.
Founded in 2012, the bank rapidly expanded its operations, establishing over 270 branches across Iran, with nearly half located in Tehran. Where it played a major role in retail and commercial banking. But its aggressive growth model brought along rising debts for the bank.
The bank has struggled for several years with dwindling revenues, default on loans, and lack of management supervision. The total losses that Ayandeh accumulated prior to its collapse were estimated at $5.2 billion. And its debt had also climbed beyond $2.9 billion. This financial gap was too big for it to overcome, leading to the intervention of the Central Bank.
Government and Bitcoin moves quickly to maintain banking stability
After the announcement, lines of people had formed outside several ex-Ayandeh Bank branches in Tehran. Security forces were present in order to keep the situation under control. Officials stated that people’s savings in Ayandeh Bank are safe and are now being transferred to their new accounts at Melli Bank.
Melli Bank’s managing director, Abolfazl Najarzadeh, confirmed that the process is complete and said the bank now provides all services previously handled by Ayandeh for its clients. The Iranian Economy Minister, Ali Madanizade. They has assured Iranian citizens that the economy is stable and that there will be no losses for the bank’s depositors.
The government’s quick action is meant to avoid bank panics in the general banking sector. Other mid-sized banks also experienced liquidity shortages in the past years, indicative of underlying economic instabilities caused by sanctions and inflation.
Iran faces deeper financial strain after UN sanctions return
Iran’s financial problems are also worse since the United Nations imposed tough sanctions in September. This came after the fallout in efforts aimed at reviving nuclear talks that stalled after Iranian facility attacks in the early months.
The tough policies isolated Iran from global markets, making it difficult for them to access global currencies. This scenario, according to analysts, has resulted in making Iranian private banks more susceptible, given the cash flow crisis.
The collapse of Ayandeh Bank is indicative of the increasing burden on the Iranian economy. With the Iranian government having absorbed the bank’s debt, it has its hands full trying to stabilize its economy, already weakened by isolation and internal mismanagement.
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