Iran’s banks strengthen capital buffers as adequacy ratios rise sharply

TEHRAN, Iran (MNTV) – The Central Bank of Iran (CBI) reports that capital adequacy ratios across the country’s banking sector have improved significantly since 2022, reflecting a stronger financial base for both state and private lenders. 

Fourteen of Iran’s 29 banks have now surpassed the 8% adequacy benchmark, compared to just seven in 2021, marking a notable turnaround from years when the sector’s average ratio hovered in negative territory.

According to CBI data, the average capital adequacy ratio currently stands at 1.75% and is expected to climb to 5.5% in the near term. 

Total capital held by Iranian banks has risen from $6 billion rials in March 2021 to $13 billion by July 2025.

CBI Governor Mohammad Reza Farzin has pledged to raise capital requirements further in the current Iranian calendar year, which runs to March 2026, to ensure sector resilience and avert risks to weaker institutions. 

He projected that banks’ combined capital will more than double this year compared with the previous year, reaching around 1.3 billion rials.

Under new banking laws, all lenders must achieve an 8% adequacy ratio by 2029, and no bank will be allowed to operate with capital below $220 million during the current year.