Several military-owned Iranian banks to be merged in one

Tuesday 26 May 2020 11:55 CET | News

The Central Bank of Iran (CBI) has announced that two banks owned by the country's armed forces will be merged into Sepah Bank by the end of May 2020.

Mehr Eghtesad Bank and Hekmat Iranian Bank will be merged into Sepah Bank, and three other armed forces banks will gradually join the process. Furthermore, three police-owned banks, Ghavvamin, Ansar, and the Samen Institute of the Islamic Revolution Guards Corps, are set to be merged with Sepah Bank.

According to Radio Farda, the merger of the banks comes at a time when the country's banking system is in a fragile situation due to corruption, US sanctions and poor economic conditions.

The accumulated loss of Mehr Eghtesad Bank in 2018 was about USD 106 million and Ghavamin’s loss was approximately USD 20 million. At the same time, military-owned banks had a total of about USD 4.5 billion in assets and in return, they had a debt of USD 4.4 billion.

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Keywords: Iran, banks, The Central Bank of Iran, CBI, Sepah Bank, Mehr Eghtesad Bank, Hekmat Iranian Bank, Ghavvamin, Ansar, Samen Institute of the Islamic Revolution Guards Corps, banking, US
Categories: Banking & Fintech
Countries: Iran (Islamic Republic of)
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Banking & Fintech