Iran’s Banking Sector Loan Growth Surges 45.5% Amidst Economic Pressures

TEHRAN – Iran’s banking network experienced substantial loan growth during the first ten months of the current Iranian year (March 2025 – January 2026), extending 8.492 quadrillion rials (approximately $169.85 billion) in loans. This represents a 45.5 percent increase compared to the same period in the previous year, according to data from the Central Bank of Iran Iran International.

Significant Increase in Lending

The increase in lending totals 2.654 quadrillion rials (roughly $53.10 billion) compared to the corresponding period last year. The figures reflect adjustments made by the banking network, with initial lending for the first ten months of the previous year recorded at 5.631 quadrillion rials (approximately $112.62 billion), later revised to 5.837 quadrillion rials (around $116.76 billion).

Allocation of Loans

A significant portion of the lending, 6.293 quadrillion rials (around $125.87 billion), or 74.1 percent, was directed towards businesses, encompassing both corporate and non-corporate entities. The remaining 2.199 quadrillion rials (about $43.99 billion), or 25.9 percent, was allocated to individual consumers and households.

Working Capital Dominates Business Lending

Working capital financing constituted the largest share of loans provided to businesses, totaling 5.153 quadrillion rials (approximately $103.07 billion). This accounted for 81.9 percent of all facilities granted to businesses across various economic sectors.

Household Spending on Personal Goods

Within the household segment, loans for the purchase of personal goods reached 937 trillion rials (about $18.75 billion), representing 42.6 percent of the total lending to conclude consumers.

Industry and Mining Sector Receives Substantial Support

The industry and mining sector received 2.33 quadrillion rials (around $46.63 billion) in working capital loans, equivalent to 45.2 percent of all working capital facilities extended across all sectors. Of the 2.6 quadrillion rials (about $53.27 billion) in total loans granted to industry and mining, 87.5 percent was allocated to working capital, highlighting the banks’ focus on bolstering production and industrial activity.

Recent Banking Sector Challenges

Recent reports indicate challenges within Iran’s banking sector. Regime-affiliated Bank Ayandeh dissolved in October 2025 after incurring nearly $5 billion USD in losses Institute for the Study of War and the Iranian Central Bank has reportedly folded some institutions. These developments occur amidst broader economic difficulties, including currency collapse and rising living costs, which sparked protests in December 2025 MERIP.