hassan dalir

One of the first structural adjustments for the Iranian government is the reformation of the banking system and financial markets. In the present study، the dynamic stochastic general equilibrium DSGE model is employed to provide answers to the following questions of economic policy. Firstly، how are macroeconomic variables changed if competition is increased in the banking industry in terms of deposit services? Secondly، how are macroeconomic variables changed if competition is increased in the banking industry in terms of loan services? The results show that an increased competition in deposits and loans service leads to an increase in production، consumption، investment and employment. However، an increase of competition among banks proves to increasesbenefit of both consumers and producers، but economic variables have a higher sensitivity to the increased competition in the loan sector compared to that in the deposit sector.