One of Iran’s largest private lenders, Ayandeh Bank, has declared bankruptcy, forcing the transfer of assets belonging to over 42 million customers to the state-owned Bank Melli, according to Iran International.
The collapse, announced Thursday, follows the bank’s accumulation of $5.1 billion in losses and nearly $3 billion in debt. Efforts by the Central Bank of Iran to rescue the institution failed earlier in the week, leaving officials no choice but to shut down its 270 nationwide branches, Iran News Update reported.
CBI Governor Mohammad Reza Farzin sought to reassure Ayandeh Bank customers that their savings would remain accessible, but the collapse underscores the inherent risks of banking models that rely on fractional reserves, customer deposit lending, and state bailouts when crises hit.
The fragility of traditional banking systems was one of the core motivations behind Satoshi Nakamoto’s creation of Bitcoin, famously referenced in the cryptocurrency’s genesis block, which alluded to the UK government’s bank bailouts.
Similarly, Bitcoin’s surge in early 2023 followed a string of US regional bank failures—including Silicon Valley Bank, Signature Bank, and Silvergate Bank—that eroded public trust in traditional finance. Bitcoin’s price jumped from below $20,000 to over $29,000 within a month as investors sought alternatives.
Despite increased reserves and deposits since that crisis, Reuters, citing a Morningstar report, recently noted that regional US banks continue to show signs of financial stress.
In Iran, the banking system remains under strain, burdened by international sanctions that restrict access to global financial networks, limit US dollar transactions, and accelerate the decline of the rial’s purchasing power. Earlier this year, the Central Bank of Iran warned that eight additional banks could face dissolution without immediate structural reforms.
The nation’s crypto sector has also faced turbulence. In June, Nobitex, one of Iran’s largest crypto exchanges, suffered an $81 million hack, contributing to an 11% decline in Iranian crypto transaction volume by July amid escalating regional tensions with Israel.
