Banking in Iran operates under a system influenced by both Islamic principles and modern banking practices. The central bank, known as the Central Bank of Iran, regulates the financial sector, overseeing commercial banks and financial institutions. The banking system primarily offers services such as savings accounts, loans, and foreign exchange transactions, while adhering to Islamic law, which prohibits interest. Due to international sanctions, particularly from the United States, the Iranian banking sector faces challenges in accessing global financial markets. This has led to a reliance on domestic banks and alternative financial systems, impacting trade and investment opportunities within the country.