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Banking M&A to Mark the End of Iran Shadow Banks

Although CBI had resorted to mergers and acquisitions in the past to bail out the victims of some bankrupt illegal credit institutions, Monday’s announcement is the first major regulatory decision for warding off another crisis
Farshad Heydari, CBI’s deputy for supervision (C) addressed a news conference on March 12. Farshad Heydari, CBI’s deputy for supervision (C) addressed a news conference on March 12.
Heydari tried to dispel rumors about the worrying situation of the whole banking system, saying that the problems of shadow banks have nothing to do with legitimate lenders

As it strives to relegate the phenomenon of shadow banks to history, the Central Bank of Iran has orchestrated a merger of two such banks into a legitimate one in order to wipe away the last traces of that rogue industry. 
According to Farshad Heydari, CBI’s deputy for supervision who addressed a news conference on Monday, the measure involves the acquisition of two unlicensed financial entities–Mehr Eqtesad Bank and Samen Credit Institution by Ansar Bank. 
Although CBI had resorted to mergers and acquisitions in the past to bail out the victims of some bankrupt illegal credit institutions, Monday’s announcement is the first major regulatory decision for warding off another crisis.
 

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