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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