Mehr Eghtesad Bank officially merged with Bank Sepah on Monday, becoming the second military-affiliated bank in Iran to merge with the state-owned Sepah.
Mohammad Kazem Choghazardi, CEO of Bank Sepah, confirmed the news, saying that Mehr Eghtesad branches will officially start operating under Sepah's flag from Tuesday (June 2), IRNA reported.
The move to merge five banks and credit institutions – all affiliated to military organizations – with Sepah started in March 2019 as part of the Central Bank of Iran policy to reform the dysfunctional banking sector, improve efficiency and eject failed banks.
Ansar Bank, Ghavamin Bank and Kosar Credit Institution are the other three military banks to merge gradually, the CBI said.
Published reports say 24 million customers have 2,150 trillion ($17.9 billion) in deposits with the five merging banks and lenders have granted 1,300 trillion rials ($10.8 billion) in loans.
The merger is in line with an earlier decision by the Money and Credit Council – the main monetary decision-maker -- and the Supreme Council of Economic Coordination -- a body comprising heads of three branches of government to streamline the dysfunctional banking industry and address macroeconomic issues.
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