Iran’s Central Bank Dissolves Samen al-Hojaj Amid Corruption Scandal
In a major blow to Iran’s financial sector, the Central Bank of Iran (CBI) has dissolved Samen al-Hojaj Credit Institution, one of the country’s largest private banks, following allegations of severe corruption and financial misconduct. The decision, announced this week, has raised fresh concerns about governance failures and economic instability in Iran.
Why Samen al-Hojaj Collapsed
Samen al-Hojaj, a key player in Iran’s financial system with ties to religious and business elites, has faced long-standing accusations of illegal lending and embezzlement. A CBI audit uncovered “systematic violations,” including unauthorized loans to politically connected individuals and hidden bad debts.
The bank’s abrupt closure leaves countless depositors uncertain about recovering their savings, deepening distrust in Iran’s banking sector.
History of Banking Scandals in Iran
This is just the latest in a series of financial meltdowns. In 2018, Caspian Credit Institution collapsed, and Bank Sarmayeh’s $2.6 billion embezzlement scandal exposed deep corruption. Experts say Iran’s banking system favors political connections over transparency, with many institutions linked to powerful entities like the Revolutionary Guard.
Public Anger and Government Promises
The shutdown has sparked protests, with depositors demanding accountability. Authorities vow to investigate and recover stolen funds, but past failures to prosecute high-level figures fuel skepticism.
“Corruption is systemic in Iran’s banking sector,” warns economist Farhad Taghizadeh. “Without judicial independence, these crises will continue.”
Economic Fallout and Investor Distrust
The scandal worsens Iran’s economic troubles, including hyperinflation and sanctions. As public faith in banks dwindles, many turn to informal exchanges and cryptocurrency.
Foreign investors may also steer clear. “No one will trust a system where banks collapse overnight,” says a Tehran-based consultant.
Will Iran Enforce Real Banking Reforms?
While the CBI’s action appears decisive, experts doubt meaningful reform will follow. Past crackdowns rarely targeted top officials, leaving corruption entrenched.
One depositor summed up public frustration: “They shut the bank, but will the thieves face justice? Or just start over under a new name?”
The answer could determine whether Iran’s financial system stabilizes—or faces more collapses.
Follow NextMinuteNews for updates.
