Half of Iran’s Banks should Close or Merge

By John Lee.

Closures and mergers of Iranian banks will be needed to modernise an industry laden with toxic loans, according to one of the country’s top bankers.

Reuters reports that Parviz Aghili [Parviz Aghili-Kermani], chief executive of Middle East Bank, estimated that a full re-organisation of the Iranian banking sector’s roughly $700 billion balance sheet would cost $180 billion to $200 billion — “And we cannot afford it,” he added.

Aghili, a former HSBC banker, said the number of banks in Iran should at least halve over the next six years.

Read more here.

(Source: Reuters)

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