Ayandeh Bank, one of Iran's largest private banks, has declared bankruptcy, affecting over 42 million customers. The bank accumulated $5.1 billion in losses and nearly $3 billion in debt, leading to its assets being absorbed by the state-owned Bank Melli. The Central Bank of Iran's failed rescue attempt left no option but closure, impacting the bank's 270 branches nationwide.
Central Bank Governor Mohammad Reza Farzin assured customers that their savings would be recoverable immediately. This incident underscores the risks of banks operating with fractional reserves and seeking bailouts. The situation mirrors past banking crises that have fueled interest in Bitcoin, highlighting the cryptocurrency's appeal as an alternative to traditional banking systems.
Iran's Ayandeh Bank Declares Bankruptcy, Impacting 42 Million Customers
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