The establishment of Imperial Bank of Iran and its political interventions

Having been established in Iran, the Imperial Bank of Persia had it slicencegranted to Britain by Naser al-Din Shah, with the headquarters located in London, and the shareholders and most agents being English. It was under Britain’s support through the British Royal Charter. British government sought particular aims through the establishment of the Imperial Bank which acted as leverage by the British government to exert pressure on Iran, thus playing roles in its political and military affairs as well as have such economic functions as loaning, theissue of banknotes, controlling foreign and domestic trade, etc. The political and militaryactivities included CoupD’étatof 1921, the reigning of Reza Shah, intervening in Iran’s foreign affairs with other countries such as the United States, payroll of the army and spies, giving financial aids to the British troops in Iran, etc. The establishment of the bank branches in cities, even, indicates this political approach, such as the establishment of one branch in Birjanddue to its strategic location, and the short distance of this region to India in order to prevent the advancement of Russians and Germans. In the present article the political functions of the Imperial Bank of Persia as well as its structure and organization have been studied. The objective has been to show that the political aims played a major role in establishing the bank and its branches, and Britain used it as a tool to exert pressure on Iran.