Economy, Business And Markets

Finance Skewed Towards Tehran

Finance Skewed Towards TehranFinance Skewed Towards Tehran

Banking services in Iran are skewed towards consumers in Tehran due to majority of companies being headquartered in the city. Sixty percent of bank loans are given in Tehran, showing an overbearing focus on the capital. Furthermore over “70 percent of commercial bank branches are located in Tehran or other provincial capitals,” said Bagher Fatahi, a Tose’e Ta’avon (Cooperative Development) Bank executive. But Tehran seems to be financing itself, as 61 percent of deposits within the Iranian banking system are made in Tehran, according to a recent report by ISNA.  The main reason why Tehran stands at the top of the list of cities with highest bank reserves is the fact that several manufacturing company headquarters are located within the capital, in spite of the fact that their factories might be located elsewhere. The major part of the banking of such companies is thus done in Tehran.