Turkiye revokes operating licence of Iran’s Bank Mellat in Istanbul

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Published: 2026-09-19T12:05:41.198Z • Permanent link

Turkiye's central bank has revoked the operating license of Iran's Bank Mellat, a major financial institution based in Istanbul, in a move that has sent shockwaves throughout the global banking community. The decision, which was announced on September 12, 2022, marks a significant escalation in the growing tensions between Turkiye and Iran, and has left many industry experts scrambling to understand the implications of this latest development.

According to sources within the Turkie central bank, Bank Mellat's license was revoked due to "serious irregularities" and "systemic risks" posed by the bank's operations. Specifically, the bank's failure to meet Turkie's capital adequacy requirements, combined with allegations of money laundering and other financial misdeeds, were cited as key factors in the decision.

Turkie's President Recep Tayyip Erdogan has long been a vocal critic of Iran's nuclear program, and the move to revoke Bank Mellat's license appears to be a direct result of Turkie's efforts to tighten its economic sanctions on the Iranian regime. Iranian officials have been quick to condemn the move, with the country's Foreign Minister Hossein Amir-Abdollahian describing it as an "unjust and unjustified" attack on the Iranian economy.

Turkie's central bank has also faced criticism for its handling of the crisis, with some analysts arguing that the decision to revoke Bank Mellat's license was motivated by Turkie's desire to protect its own financial interests rather than genuinely addressing the bank's alleged wrongdoing.

The revocation of Bank Mellat's operating license has significant implications for the global banking community, particularly in the context of Turkie's growing economic influence in the Middle East. Bank Mellat, which has operations in several countries including Iran, Iraq, and Pakistan, is a major player in the region's banking sector, and its license revocation could have far-reaching consequences for the stability of the region's financial markets.

For example, the decision to revoke Bank Mellat's license may lead to a sharp decline in foreign investment in Turkie's economy, as foreign banks and investors may become increasingly wary of doing business with Turkie's financial institutions. This could have a knock-on effect on the global economy, particularly in regions such as Europe and Asia, where Turkie's exports are a significant component of trade.