In recent developments, the financial landscape of Iran has been significantly altered with the announcement of the closure of Ayandeh Bank, a prominent player in the nation’s banking sector. This event has left numerous individuals and families grappling with uncertainty about their financial futures, sparking discussions around alternative financial systems such as cryptocurrency.

The decision by regulators to close the bank stemmed from alarming reports of financial mismanagement and severe capital deficiencies. Following a detailed investigation, the Central Bank took the critical step of revoking the bank’s operating license, which has further shaken the already fragile confidence in the banking environment.

Efforts For Customer Protection

To alleviate the impact of this sudden closure, the Central Bank has mandated that Ayandeh’s assets and customer accounts be transferred to Bank Melli Iran, a state-owned entity. Starting October 25, depositors will have the opportunity to regain access to their funds.

Estimations indicate that around 42 million clients may be directly impacted by this transition. Officials have assured the public that the majority of the staff will remain employed and that the state guarantees deposits for everyday savers. However, the vastness of this operation has left many feeling anxious and uncertain.

Bank bankruptcy sends shockwaves across Iran

“… Established in 2012, Ayandeh Bank established a vast network of 270 branches nationwide, including a significant presence in Tehran.

Yet, it became increasingly burdened by debt, accumulating losses that culminated in financial failure…”

— Financial Analyst (@finobs) October 26, 2025

Significant Financial Distress Uncovered

Recent financial analyses reveal that Ayandeh Bank faced staggering losses estimated at 5.5 quadrillion rials, roughly translating to $5.1 billion, alongside overdrafts nearing 3.13 quadrillion rials, or close to $3 billion.

Regulatory officials noted a deeply troubling capital adequacy ratio that dipped into the negatives at an astonishing rate of -600%. Observations from banking oversight indicated that a vast majority of Ayandeh’s funds were allocated to related entities, creating an alarming concentration of risk.

This collapse has been attributed to a combination of poor corporate governance and dubious lending practices, prompting calls for structural reforms. A bank supervision official pointedly remarked that funds were primarily distributed to groups affiliated with the bank’s management, highlighting systemic failures in internal controls.

Banking Sector Under Pressure

Regulatory bodies have issued warnings that additional financial institutions may be on the brink of collapse without swift reform actions. Current discussions indicate that there may be at least eight other banks exhibiting distress signals, which has triggered increased interest in Bitcoin and digital assets among the public.

Sanctions, restricted access to global capital markets, and currency instability have compounded the vulnerabilities of Iran’s banking framework. Experts caution that the state taking responsibility for Ayandeh’s liabilities could impose heavier fiscal burdens, necessitating stricter monitoring of the remaining banks.

Public Sentiment and Broader Implications

In light of Ayandeh’s downfall, many depositors are contemplating alternative options such as foreign currencies or cryptocurrencies to safeguard their savings against domestic banking risks.

While anecdotal, this sentiment reveals a growing awareness among the populace regarding the benefits of diversifying their assets. In the short term, however, depositors remain primarily focused on their ability to access cash and any potential service interruptions during the transition.

Looking Toward Alternatives: Cryptocurrency’s Rise

As concerns about traditional financial institutions intensify, there are indications that more Iranians are exploring the use of cryptocurrencies as a secure means of saving their money. The recent collapse has reignited discussions around the resilience of digital assets, which were designed to function independently of flawed banking systems.

The rise of Bitcoin underscores its foundational purpose: providing a safeguard against financial instability and mismanagement.

Featured image from Gemini, chart from TradingView