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

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.