Banking and insurance in Iran
Sector Share in total credits (% ) - 2009 Share in total credits (% ) - 2010
Agriculture , water , and processing industries 25 25
Manufacturing and mining 33 35
Construction and housing 20 20
Trade and services 15 20
Export 7 -
Sectoral allocation of banking facilities
See also : Economy of Iran § Sectors of the economy In 2008 , Iranian banks extended 70 trillion rials ( $ 7 billion ) to quick-yield economic enterprises . [ 48 ] According to Article 14 of the Monetary and Banking Law of Iran , the CBI can intervene in and supervise monetary and banking affairs through limiting banks , specifying the mechanisms for use of funds and determining the ceiling of loans and credits in each sector .
Following the Iranian Revolution, Iran's banking system was transformed to be run on an Islamic interest-free basis. As of 2010 there were seven large government-run commercial banks. As of March 2014, Iran's banking assets made up over a third of the estimated total of Islamic banking assets globally. They totaled 17,344 trillion rials, or US$523 billion at the free market exchange rate, using central bank data, according to Reuters. Since 2001 the Iranian Government has moved toward liberalising the banking sector, although progress has been slow. In 1994 Bank Markazi (the central bank) authorised the creation of private credit institutions, and in 1998 authorised foreign banks (many of whom had already established representative offices in Tehran) to offer full banking services in Iran's free-trade zones. The central bank sought to follow this with the recapitalisation and partial privatisation of the existing commercial banks, seeking to liberalise the sector and encourage the development of a more competitive and efficient industry. State-owned banks are considered by many to be poorly functioning as financial intermediaries. Extensive regulations are in place, including controls on rates of return and subsidized credit for specific regions. The banking sector in Iran is viewed as a potential hedge against the removal of subsidies, as the plan is not expected to have any direct impact on banks. As of 2008, demand for investment banking services was limited. The economy remains dominated by the state; mergers and acquisitions are infrequent and tend to take place between state players, which do not require advice of an international standard.