Chaos erupted across Iran's capital on Saturday as Ayandeh Bank, one of the country's largest private lenders, was officially declared bankrupt, leaving depositors scrambling in long queues amid fears of losing billions in savings.
The collapse, which has saddled the institution with over $5.2 billion in losses, marks a seismic shock to Iran's already fragile, sanctions-ravaged financial system, prompting swift government intervention to absorb its assets into state control.
The announcement came late Friday from Iran's Central Bank, which moved to dissolve Ayandeh Bank and transfer its operations, branches, and liabilities to the state-owned Bank Melli Iran.
Founded in 2012, Ayandeh operated a vast network of 270 branches nationwide, including 150 in Tehran alone, serving millions of ordinary Iranians and small businesses. Official media outlets like IRNA reported the decision as a "necessary restructuring" to protect depositors, but the move has exposed deep-seated issues in the sector: rampant non-performing loans, opaque lending to regime-linked conglomerates, and a real estate market crippled by economic isolation.
By dawn, anxious crowds had formed outside former Ayandeh branches in Tehran, with families clutching account books and demanding access to their funds.
Eyewitnesses described scenes of pandemonium—elderly savers pushing through barriers, young professionals on phones coordinating withdrawals, and police in riot gear forming lines to prevent stampedes.
"I've spent 20 years building my savings here for my children's future," said Reza Karimi, a 55-year-old shopkeeper from southern Tehran, who waited over four hours in the sweltering heat.
"Now, everything feels like it's vanishing. How can we trust any bank after this?"The bankruptcy's scale is staggering: Ayandeh's bad debts alone exceed $5 billion, equivalent to roughly 2% of Iran's GDP, according to estimates from local financial analysts.
This catastrophe stems from years of systemic failures exacerbated by U.S. and international sanctions reimposed in September 2025, following the collapse of nuclear deal revival talks and a series of alleged Israeli strikes on Iranian facilities.
The bank's troubles trace back to aggressive lending during a 2020-2022 property boom, much of it funneled to politically connected firms that defaulted when the market tanked amid hyperinflation and currency devaluation—the rial has plummeted over 50% against the dollar this year.
Central Bank Governor Mohammad Reza Farzin sought to calm nerves in a televised address, assuring the public that "all deposits up to the insured limit of 100 million rials [about $200] per account are fully protected" and that Bank Melli would honor larger sums through a phased payout plan.
"This is not a failure of the system but a targeted cleanup to strengthen our resilient economy," Farzin insisted, echoing regime rhetoric on self-sufficiency.
The government's response has been a mix of reassurance and repression. While Bank Melli branches extended hours and deployed extra ATMs, authorities arrested several individuals accused of "spreading rumors" online that fueled the panic.
International observers, including the International Monetary Fund, have urged Tehran to accelerate transparency measures, but with U.S. sanctions tightening amid escalating Middle East tensions, such pleas may fall on deaf ears.
For everyday Iranians, already grappling with 40% inflation, fuel shortages, and youth unemployment above 25%, Ayandeh's implosion is more than a financial headline, it's a stark symbol of a nation on the edge.
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