Title: Central Bank Initiates Landmark Banking Reform, Signaling Deeper Financial Overhaul
A New Chapter in Banking Regulation
In a significant move for Iran’s financial sector, the Central Bank has commenced a new phase of its banking reform agenda. This process was activated following the transfer of liquid assets from the troubled Ayandeh Bank to the National Bank of Iran. Central Bank Governor, Mohammadreza Farzin, has clarified that this action is not a traditional merger but a strategic regulatory measure known as “Gzir.” This approach involves decisively addressing an unhealthy bank without transferring its financial imbalances to healthier institutions.
A Firm Application of New Legal Powers
This decision marks the first major application of the Central Bank’s new legal authority, demonstrating a firm commitment to utilizing its full regulatory toolkit. Officials have emphasized that the restructuring of Ayandeh Bank is not an isolated event. It represents the beginning of a sustained effort to stabilize the banking system, as Ayandeh is just one of several major financial institutions identified with inflated balance sheets and non-productive assets.
A Sustained Campaign for Stability
Highlighting the ongoing nature of this initiative, Farshad Mohammadpour, the Central Bank’s Deputy for Regulation and Supervision, confirmed that two other unbalanced banks have already been successfully restructured. He further noted that several additional banks are currently under the Central Bank’s close supervision and are on a clear path toward achieving financial balance. While the specific order for future interventions remains undisclosed, reports indicate that five other banks—Day, Sarmayeh, Mellal, Iran Zamin, and Sepah—are under review as the reform program continues its systematic implementation.