An Analysis of Effective Factors on Private Deposits in Commercial & Development State –owned Banks in Iran

This paper deal with to estimate the effects of influencing factors on absorption of the private deposits in state owned commercial and development banks in Iran banking system. The model includes two groups of variables according to Friedman's money demand theory and individual saving literature. In First, the macroeconomic variables include, national income, real banking rate, foreign exchange rate and real state price index and the seconds are, banking industry specific variables including, number of branches, credit volume and the number of bank employee. Two models in the form of panel data(FE) was used to estimation the role of effective factors on private deposits in six commercial and four development state owned for 8731-18period in iran. the results show that, national income, real banking rate and the credit have positive effect and foreign exchange rate and real state Price index have negative meaningful effect on the bank deposits and number of branches and number of employee don’t have any meaningful effect on private deposits in those banks in Iran.