Investigating factors affecting bank interest rates with emphasis on investment and economic development
Subject Areas : اقتصادی
1 - Department of Management and Accounting, Technical and Vocational University (TVU), Tehran, Iran
Keywords: inflation, economic growth, profit. ,
Abstract :
Banks play important roles in the economic system, including the provision of savings and intermediation, facilitating payment flows, allocating credit, and establishing financial order. Even in economies with advanced financial markets, banks are at the center of financial and economic activities and are considered a fulcrum for implementing monetary policies and controlling inflation. In Iran, due to economic sanctions that have caused the inability to secure financial resources from international channels, the economic system's reliance on the monetary-banking system has increased sharply, causing the high impact of bank facility interest rates on investment and, consequently, on Iran's macroeconomic variables. Given the high inflation rate in the Iranian economy and the power of banking tools to control it, the present study was conducted with the aim of investigating the factors affecting bank deposit interest rates in 2024 with a sample of the last 10 years. The study is descriptive in terms of data collection method (correlation branch) and applied in terms of purpose. Data were collected through library documents and analyzed with the help of regression test. The research, assuming inflation rate, volume of bank facilities, number of bank branches, country's population and GDP as factors affecting bank interest rate, concluded that the volume of bank facilities has a negative and significant linear relationship, inflation rate, volume of bank facilities, country's population and GDP have a significant second-degree nonlinear relationship with bank interest rate. Thus, in order to determine the bank interest rate, it is necessary to consider the volume of bank facilities and inflation in order to control inflation and provide the basis for economic growth and development.
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