As usury was forbidden under Islam, the traditional money lenders in Iran were the Jewish sarrafs, who continued to dominate the field after the establishment of the Imperial Bank due to greater loan flexibility and cultural ties. At the time the only form of money in circulation was gold and silver coins.

In 1890 a similar Russian bank known as the Loan and Discount Bank of Persia was founded. The Anglo-Russian Convention of 1907 split Iran into a Russian and British sphere of influence. It assigned to the Russian Loan and Discount Bank the revenues from the amortization of Persian debts in northern Iran, and the same for the British Imperial Bank in southern Iran.

Bank Melli, an Iranian-controlled central bank, was established in 1928. [Colonialism, Nationalism and Jewish Immigration to Palestine: Abdu'l-Baha's Viewpoints Regarding the Middle East by Kamran Ekbal p3; Wikipedia]