One of Iran’s Biggest Banks Fails Amid Push to Tighten Standards

Ayandeh Bank, one of Iran’s largest commercial lenders, has been dissolved in a state take-over that’s exposed major failings in a globally isolated sector dogged by bad debts and weak regulation.

Central Bank of Iran Governor Mohammad-Reza Farzin announced the official closing of Ayandeh Bank in a statement, adding that the lender’s customers, employees and branches will be absorbed by the state-owned Bank Melli as of Saturday. He didn’t give any figures for the size and scope of Ayandeh’s debts and financial losses, only referring to its “inefficiency,” “unhealthy performance” and negative capital adequacy ratio.