Iran Banking System Operating with over 23,000 Branches

The number of active branches and their distribution has always been a matter of debate among banking experts. Given the rapid growth of electronic banking in recent years and the Central Bank’s policy to reduce the physical branches, the issue has received significant attention.  

The question raised by observers regarding the high number of branches is whether the figures comply with the real demands of the monetary and financial sectors of the economy.

Some argue that the abundance has been a major obstacle to economic growth and that there must be restrictions on the banks for developing their branches.

Proponents, however, contend that such limitations are unjustifiable and run counter to the principle of creating a desirable business environment. They argue that it should be left to the banks to decide on the matter based on their capital, policies, profit making and marketing.  

Despite the criticism, experts say a comparison with other countries indicates that Iran’s status in this regard is a relatively acceptable one. The figure in France, for instance, is 37.5 branches for each 100,000 people. But in some countries the average is lower compared to that of Iran: every 100,000 people in Saudi Arabia have 8.8 branches and the numbers in Singapore and Turkey are 10 and 19.8 respectively.

Based on Central Bank figures, the following are the numbers of branches each bank and institution holds across the country. As shown in the table below, Bank Melli stands at the top with 3,348 branches, followed by Bank Saderat and Bank Tejarat.