Seif Backs Bank M&As

Governor of the Central Bank of Iran Valiollah Seif has again backed the possibility of mergers in the Iranian banking industry that badly needs reforms to address its many challenges. Seif also told the local media on Saturday that CBI supports consolidation of banks as it would “improve their financial strength”, IBENA, a news website affiliated with CBI, reported. He noted that if lenders reach a decision to undertake a merger, the central bank will encourage them to do so. Some officials had weighed in on bank mergers as a possible strategy to rescue Iranian lenders burdened by sour assets and unhealthy balance sheets, but the bank’s top policymaker has spoken little on the issue. He has given his green light, but abstained from ordering any banks to tie up.