Iran Economy NewsIran's Sketchy Bank Merger

Iran’s Sketchy Bank Merger


Iran’s Central Bank

By Mehdi

Five banks and financial institutions affiliated with the Iranian military, some suffering with accrued losses, are to be merged into Bank Sepah, Iran’s Central Bank announced on Saturday.

Iranian banks have been suffering from financial crises for years, mainly due to lack of proper banking supervision over loans given to government insiders that have never been paid back, something that has caused many credit institutions to go bankrupt and left millions of people without savings.

The government and the central bank have stabilised many on these smaller banks, which are often run by those close to the government without proper licences, and this means that effectively these banks are robbing the Iranian people twice. First, by stealing their deposits, and second, by taking a bail out from the taxpayers.

The Central Bank says that its merger is based on an order from Money and Credit Council and the High Economic Council to “reform the banking system and putting the money market in proper shape”; something approved by the heads of the three branches of the government.

Iranian economist Ahmad Alavi explained that the Central Bank’s proposed aim is to solve some of the problems inherent in the banking system, including lack of compliance to banking regulations, high risk of bankruptcy, and money laundering, but that the widespread corruption and lack of transparency inherent in the system provide major obstacles to fixing the problems.

Despite all this, the Central Bank is hiding the problem to stop customers from rushing to the banks to withdraw their money.

The five institutions that are being merged with Bank Sepah are:

• Bank Ansar, which belongs to the Islamic Revolution Guards Corps (IRGC)

• Bank Qavamin, which was established by Iran’s police chief, Mohammad Baqer Qalibaf, in 2000

• Bank Hekmat Iranian, which belongs to the Iranian army

• Bank Mehr Eqtesad, which belongs to the Basij militia force,

• Kowsar Credit Institute, which was established by the Ministry of Defense in 2008

Of course, Bank Sepah maintains close links to the military, given that it is the bank that handles military personnel’s financial affairs, and has since its establishment.

The Central Bank promised that the jobs of the workers at the banks would be secure and that salaries would not be delayed, but economic analysts have said that it is inevitable that some of the workers at over 2000 branches will be laid off.

Latest news

Iran’s New Generation Seeks Nothing but Regime Change

In a silly and desperate statement, the Iranian regime’s foreign minister Hossein Amir-Abdollahian claimed that nothing special is going...

Iran’s Youths Broke the Spell of Fear

One of the main characteristics of the recent protests in Iran is the courage and fearlessness of the people,...

Iran Is on the Brink of a Revolution

The wall of fear has been broken. In many cities across Iran, women are taking to the streets, leading...

Iran’s Regime Claims To Fill Global Energy Gap Despite Crippled Petroleum Sector

In recent weeks, the Iranian regime’s officials have been constantly exaggerating their huge capacity in oil and gas reserves...

What Is Happening in Iran?

Following the brutal killing of Masha Amini, the Iranian people have once again united to fight and defeat the...

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Must read

EU-Iran officials hold talks on nuclear row

AFP: Senior European and Iranian diplomats met in Turkey...

Will the US Push for Regime Change in Iran?

Iran Focus London, 12 Aug - There are many...

You might also likeRELATED
Recommended to you