Iranian banks report significant increase in capital adequacy ratios

Iranian state and private banks have significantly increased their capital adequacy ratios in the past four years, according to a statement by the Central Bank of Iran (CBI).

News ID: ۲۰۰۱۷۱۷

10 August 2025

The CBI said on Saturday that 14 out of 29 banks in Iran had increased their capital adequacy ratio to above 8%, marking a significant improvement from 2021 when only 7 banks in the country had met the standard.

The bank said the average capital adequacy ratio of Iranian banks had reached 1.75% after years of hovering around negative territory.

It said that total capital held by banks in Iran had increased by 5,200 trillion rials in March 2021 to 11,700 trillion rials ($13 billion) in July 2025.

The lender said the average capital adequacy ratio in the Iranian banking system would soon increase to 5.5%, adding that new banking laws in the country stipulate that the ratio should reach a target of 8% by 2029.

CBI Governor Mohammad Reza Farzin said in May that the lender would increase the capital requirements for the banks in the country in the calendar year to March to make the sector more robust and to avoid the risk of collapse for certain state and private banks.

Farzin said at the time that the collective capital held by the banks in Iran would more than double in the calendar year to late March compared to the previous year to reach 12,000 trillion rials.

He said no banks in Iran will be able to continue to operate this calendar year with a capital of less than 200 trillion rials ($220 million)./isna