Iranian banks are financial institutions that operate within the Islamic Republic of Iran. They provide a range of services, including savings and checking accounts, loans, and investment opportunities. The banking system is primarily state-owned, with several major banks like Bank Melli and Bank Sepah playing significant roles in the economy. The banking sector in Iran is governed by Islamic banking principles, which prohibit interest (riba) and promote profit-sharing arrangements. This system aims to align financial activities with Islamic law, impacting how banks operate and interact with customers. International sanctions have also affected the banking sector, limiting its global reach.