Bank Melli Iran

Bank Melli Iran is the country’s largest state-owned commercial bank, established by parliamentary decree in 1927; before the Central Bank of Iran was created in 1960, it handled several central banking functions. It operates a broad domestic branch and ATM network and offers retail and corporate services including current and savings accounts, debit cards on the national Shetab payment system, domestic transfers, payroll, cash management, and financing structured under Islamic banking contracts such as murabaha, ijara, and qarz al-hasanah. Trade finance products (letters of credit, collections, guarantees) are available for eligible clients, though cross-border use is constrained by international sanctions and limited correspondent banking access, which restricts services in major foreign currencies. The bank has maintained overseas branches or subsidiaries in select jurisdictions, but the status of some international operations has shifted over time due to sanctions and local regulatory actions. Digital channels include online and mobile banking for payments, bill settlement, card management, and strong customer authentication tools, with functionality oriented to domestic rails rather than international card schemes. Ownership and oversight are tied to the Iranian state, with supervision by the Central Bank of Iran; system-wide challenges include high inflation, rial volatility, asset-quality pressures, and periodic public-sector balance sheet interventions. Deposits fall under the national deposit guarantee framework subject to local rules and coverage limits. For non-residents and international businesses, practical usability is largely domestic: sanctions exposure, currency controls, and counterparty risk outside Iran make foreign-currency services and cross-border transactions limited or unavailable.