[5][6][7][8][9] The Shahr Credit and Financial Institution was established with authorization from the Central Bank and with shares owned by the municipalities of Tehran and other Iranian metropolitan areas.

It started its official operations on February 9, 2009, with an initial capital of 1.5 trillion Iranian rials.

The main motivation behind establishing this bank was to meet municipalities' need for large-scale financing, liquidity, and capital to cover urban development costs, aiming for self-sufficiency in urban management.

After extensive efforts by senior managers of Tehran Municipality and other metropolitan areas, and with an increase in capital by shareholders to 2 trillion rials, the Central Bank, in coordination with the High Council of Money and Credit, approved the registration of Shahr Bank on February 8, 2010.

Two years after its establishment, the shareholders raised the bank’s capital to 4 trillion rials to provide necessary liquidity.