Financial Tribune - The process of merging two of five military banks and credit institutions with the state-owned Bank Sepah will be complete early next month, governor of the Central Bank of Iran said.

"Bank Hekmat Iranian and Mehr Eqtesad Bank are to hold a board meeting to finalize the merger in the next few days," Abdolnasser Hemmati said an In a note posted on his Instagram account on Sunday.

The remaining three banks will follow gradually.

In March 2019 the Central Bank of Iran announced the merger as part of a plan to reform the struggling banking sector and improve banking efficiency. The megamerger includes Ansar Bank, Bank Hekamat Iranian, Mehr Eqtesad Bank, Ghavamin Bank, and Kosar Credit Institution.