Tehran, Iran – The Central Bank of Iran has announced the merger of Ayandeh Bank, one of the country’s largest private lenders, with Bank Melli, the state-run national bank. This decision was made public on Thursday, with Ayandeh branches set to transition to Bank Melli branches by Sunday, Oct 27, 2025.

Mergers and Economic Impact

Customers have been assured that their accounts and deposits will remain secure under the new structure, with all existing contracts maintained. However, Ayandeh Bank’s significant financial difficulties, which resulted from prolonged operational issues, have had a notable impact on Iran’s overall economic stability.

Historical Context

Ayandeh Bank was established in 2013 through the merger of Tat Bank with two state-linked financial entities. The bank has since faced challenges due to its connection with a range of unlicensed financial institutions that emerged in the 2010s, offering high interest rates but often failing to return deposits.

Financial Details

The Central Bank of Iran reported that Ayandeh had accumulated debts amounting to 5 quadrillion rials ($4.67 billion) and held 2.5 quadrillion rials ($2.34 billion) in customer deposits. The bank had exceeded its legal loan limits, contributing substantially to its financial instability.

Regulatory Actions

The Central Bank had previously intervened by revoking the voting rights of shareholders and transferring control to the Ministry of Economic Affairs and Finance. Despite these measures, Ayandeh continued to accrue significant losses, necessitating the recent merger.

Sector-Wide Implications

Ayandeh’s dissolution is indicative of broader issues within Iran’s banking sector, characterized by a high volume of non-performing loans. The Central Bank has highlighted systemic imbalances, with Ayandeh alone accounting for a significant portion of overdrafts and capital imbalances in the sector.

Future Prospects

The assets of Ayandeh, including significant real estate holdings such as Iran Mall, will be managed and potentially sold by Bank Melli to mitigate some of the financial losses. However, the process is expected to be complex and lengthy.

This merger reflects ongoing efforts to stabilize Iran’s banking sector, though it underscores the challenges faced due to extensive financial mismanagement and corruption. The Central Bank has indicated that Ayandeh’s top shareholders will be held accountable, but the specifics remain unclear.

The impact on the general population is anticipated to be significant, with potential inflationary pressures resulting from the measures required to address the merger’s financial implications.