Support for Bank Mergers

EghtesadOnline: The merger of distressed small financial institutions with major banks will help solve the sector’s problems, the director of research department at the Banking and Monetary Institute said.

News ID: ۷۷۶۷۰۳

03 June 2017

“The Central Bank of Iran concluded that if a small bank or credit institution grapples with problems, it could be merged into a larger bank,” Hamid Zaman-Zadeh was quoted as saying by IBENA. Zaman-Zadeh noted that the preferred strategy should be to merge these small banks and credit institutions into strong banks with few troubles, otherwise a new crisis is imminent. The Central Bank of Iran earlier announced that it considers mergers as a solution for struggling banks only when other options fail to solve their problems, according to Financial Tribune.