As anti-government protests in Iran continue for an 18th day, attention is focusing on the collapse of Ayandeh Bank, which triggered the large-scale backlash.
The Wall Street Journal (WSJ) analyzed that the fall of Ayandeh Bank was the fuse for Iran's economic collapse and sparked the most serious political and social crisis in about 50 years since the establishment of the Islamic Republic. The bank was liquidated in Oct. with $5 billion (about 7.4 trillion won) in accumulated losses.
Ayandeh Bank was launched in 2013 when Iranian business tycoon Ali Ansari merged two state-run banks with his own. Ali Ansari, from one of Iran's wealthiest families, is known to be close to former President Mahmoud Ahmadinejad, a hard-line conservative, and influential figures in the administration. The U.K. government added Ansari to its sanctions list right after the collapse of Ayandeh Bank, labeling him a "corrupt banker who helped fund the Islamic Revolutionary Guard Corps (IRGC)."
Ayandeh Bank grew by offering the highest level of interest rates on deposits in Iran. Millions of depositors flocked, and as its own funds ran short, it repeatedly borrowed large sums from the Central Bank. Earlier, as U.S. economic sanctions were reinstated in 2018, the Central Bank had provided liquidity to banks at high interest without collateral. To raise loan funds, the Central Bank printed money, which is seen to have caused the rial to plunge and prices to soar.
Flush with liquidity, Ayandeh Bank expanded the size of its bad loans through a "self-lending" structure that concentrated a significant portion of funds on itself or corporations linked to it. For example, in 2018 the bank pursued the mega "Iran Mall" investment project; the building, twice the size of the U.S. Pentagon, was constructed as an ultra-luxury facility with a movie theater, swimming pool, and indoor garden. According to a senior Central Bank official, at the time of Ayandeh's bankruptcy, more than 90% of its asset was tied up in this project.
Meanwhile, Iran's economic indicators have steadily worsened. In 2025, over one year, the value of the Iranian rial plunged 84% against the dollar, and food prices rose by 72%. According to estimates by Virginia Tech economist Salehi Isfahani, the scale of "capital flight" out of Iran last year was as high as $20 billion (about 29.5 trillion won).
In the end, the Central Bank did not announce the liquidation of Ayandeh Bank until Oct. The government assumed the bank's liability under the pretext of protecting depositors and wrapped up the "cleanup" by forcibly merging it into Melli Bank, the largest state-run bank. According to Iranian economists, at least five or more state-run banks, including Sepah Bank, are believed to be facing similar crises.
Experts see Ayandeh Bank's bankruptcy as more than a simple financial failure, calling it a signal of the collapse of a corrupt "inner-circle finance" system. Erik Meyerson of Sweden's SEB said, "If Iran's regime could solve the problem with money, it would have done so already," adding, "Only the system's vulnerabilities are becoming more evident."