The ongoing protests in Iran that now pose the most significant threat to the regime since the founding of the Islamic Republic did not just erupt from political dissent or youthful demands for freedom, it started with the collapse of a bank.

Late last year, Ayandeh Bank collapsed under the weight of nearly $5 billion in bad loans. The lender, controlled by regime insiders, was absorbed into a state-owned bank as the government printed money to plug the hole. The move masked the crisis, but didn’t fix it.

The collapse exposed a financial system buckling under years of sanctions, reckless lending, and dependence on inflationary money-printing, leaving it dangerously insolvent and illiquid.