According to Valiollah Seif, the recent developments surrounding Bank Ayandeh have highlighted one of Iran’s deepest economic challenges: banking imbalance.
The crisis at Bank Ayandeh is not an isolated failure, but a symptom of a structural issue that has affected Iran’s banking system for years. This includes the collapse of unlicensed financial institutions, chronic losses of several banks, and the accumulation of fictional assets on balance sheets.
The problem stems from suppressed interest rates and a command-driven banking structure.
While each banking crisis is often attributed to managerial misconduct or weak oversight, the root cause lies in the misaligned relationship between the government, the Central Bank, and the money market.
Author's summary: Iran's banking system faces a structural crisis.