Central Bank Orders at Least 20 Percent Growth in Loan to Deposit Ratio for Underserved Provinces

Iran's Central Bank, in circular No. 05/133936 dated 4 Shahrivar 1405 (August 26, 2026), reported by Tasnim News Agency and carried by Donya-e-Eqtesad on Monday, 9 Shahrivar 1405 (August 31, 2026), required banks and credit institutions to pursue balanced regional and provincial financing. Under the circular, resource allocation in each province must match the deposits mobilized in that same province, following an earlier circular, No. 99/21669 dated 3 Ordibehesht 1399, which had already mandated that at least 50 percent of each province's deposit resources be allocated back to that province.

Citing clause (1) of paragraph (b) of Article 10 of Iran's Seventh Five Year Development Plan law, the Central Bank also required banks to raise the loan to deposit ratio in deprived and underserved provinces by at least 20 percentage points relative to the start of the plan over its implementation years, while reviewing local branches' lending authority and accounting for the current rise in the general price level.