History Banking and insurance in Iran

in 1960 central bank of iran (cbi, known bank markazi) established banker government, responsibility issuing currency. in 1972 legislation further defined cbi’s functions central bank responsible national monetary policy. in 1960s , 1970s, expansion of economic activity fueled oil revenues increased iran’s financial resources, , subsequently demand banking services increased exponentially. 1977, 36 banks (24 commercial , 12 specialized) 8,275 branches in operation. topline revenue has been trade finance , letters of credit.

after revolution, government nationalized domestic private banks , insurance companies. bank law changed under new interest-free islamic banking regulations. post-revolution reduction in economic activity , financial resources required banks consolidate. 1982, consolidation, in conformity banking nationalization act, had reduced number of banks 9 (six commercial , 3 specialized) , number of branches 6,581. subsequently, system expanded gradually.

the government began privatize banking sector in 2001 when licenses issued 2 new privately owned banks.

in 2011, 7 state-owned , private iranian banks involved in usd 2.8-billion embezzlement case, involved forging documents secure multibillion-dollar loans , purchase state-owned companies.

in 2014, iranian authorities arrested 12 people embezzlement of more $4.5 billion (3.6 billion euros) kerman branch of tejarat bank 2009 until arrest in 2013.