فصلنامه پژوهش های پولی - بانکی
پیاپی 1 (پاییز 1388)

Nowadays, Central Banks due to economics transformation and new technology revised their activities accordingly. New targets have been defined and with respects to new ideas about small government, market mechanism promoted instead of central planning and government intervention policies. Central Banks used indirect instruments as their favorite instrument. Also, in term of economic policy, they gave top priority to economic stability and inflation controls rather than unemployment before the recent economic crisis.In Iran, after 50 years of establishing Central Bank and passing two important laws on money and banking in 1972 and 1983, there is a need to revise comprehensively the targets, instruments and structure of central banking. Islamic banking is the rule of the law in banking system in Iran since 1983 and after 25 years of practice, it is necessary to evaluate and develop banking activities according to the modern banking and new development.In this paper, we investigate the economic transformation and financial markets development and the role of central banking in terms of monetary policy and new instruments to deal with economic problems in Iran. Also, we proposed some changes in structure, instruments and targets of Central Bank of Iran to cope with banking and financial markets problems.

The role of banking system in the economic development of countries is crucial, so the stability of banking system is essential for economic stability. In order to achieve banking stability, some countries established a deposit insurance system. But these kinds of systems reveal relatively complex mechanisms.In this paper the attempt was made to identify the impact of explicit deposit insurance on uprising of banking crises by using a multivariate logit model based on the evidence of 23 developing countries (including Iran) in 1980 – 2002 period. The results reveal that explicit deposit insurance tends to increase the likelihood of banking crises. the likelihood is increasing in the cases of extensive insurance coverage offered to the depositors, the funded schemes, voluntary deposit insurance system, and the government run(rather than the private sector) banking system.

Bank credits affect employment through providing investment opportunities for firms and creating jobs for applicants. This needs, of course, an efficient financial system in the country to manage properly financial resources in order that the firms can access to the relevant economic effects of employment and growth. The performance of banking is thus a major determinant of employment and business environment affecting importantly other economic sectors. More specifically, credits devoted to a specific sector may affect indirectly economic activities of other sectors. This development may cause a diversified range of job opportunities in the economy. This study examines the effects of bank credits and other macro-determinants on employment of the Iran's economy including industrial, agricultural and services sectors over 1981-2006. Accordingly, we specify a regression system for such sectors and estimate related equations by the SUR (Seemingly Unrelated Regression) method. Empirical results provide a situation to analyze various effects of real bank credits on employment and development of business environment in the Iranian economic sectors.

Finance is considered as one of the main axes of creating economic activities. Financial institutions such as banks and financial organizations are the main players and role makers and creators of suitable environment in this area, because they, as the financial intermediates, though the decrease of transaction costs, facilitates the access to capital for managers and investors, which in addition to elevating activities and internal economy, brings about the necessary conditions for absorbing foreign investments. The banking system of the country in spite of facing with important developments after the victory of revolution, imposed variety of functions which are against the spirit of banking activities, as an economic institute, was deviated from its main task which is absorbing savings and optimum allocation of them, and its role as an axes creator in development and renovation of the economy has been faded. One of the reasons for this fact is the sophisticated bureaucracy and over-regulation in banking system which threatens the simplicity, transparency and the stability of investment in the country. Therefore, in addition to referring to the position, structure and characteristics of the banking system of the country, this paper tries to evaluate the legal and practical bottlenecks of credit system and offer suitable solutions for structural reform and creating suitable environments in this sector, as one of the main fields of business environment reforms in the country.

Ratification of the Law governing Iran Capital Market in 2005 in the Parliament was a new approach in Iran Economic situation. Currently, we are in the process of formation of modern market system in Iranian economy and simultaneously new financial markets are also being designed. In this article, new business environment in Iran capital market are considered on one hand, and on the other hand, possibilities and potentials that this market is able to create for other markets are also studied. One of the main points in improving business areas is to develop ways for financing; in this regard, Iran capital market is able to broaden other markets indirectly. Providing facilities for issuing different securities in order to raise funds for different business plans, is one of the important aspects and approaches of capital market. Developing new investment instruments, necessary institutions for facilitating and speeding market activities and operations, and also creating active and developed markets for issuing and trading different securities are other main techniques of capital market to improve business environment in Iranian economy. Among indices for evaluation business environment, indices for "time" and "facilities to start up a business" and "investor protection" are in close relation with the capital market supervisory authority. In addition to describing educational outcomes of the editors mentioned in this article, capital market effects on business environment and its indices, and its necessary requirements for business needs in capital markets were being studied as well; meanwhile, useful amendments for developing and booming business evaluation indices are also considered and discussed. This study claims that capital market circulates "informed capital" and therefore, is a strong incentive for innovation, creating new jobs and economic growth.

In this research, job opportunities have been examined among 26 productive sectors of Iran's economy by using input-output table in 2001. From viewpoint of employment, production and value added, the key sectors has been diagnosed by using MRI, elasticity of input-output table, backward and forward linkages and June's corrective methods. Then, job opportunities has been analyzed among different economy sectors by using parts of final demand and value added in input-output table. The result indicate that the most of job opportunities in Iran's economy have been create by agriculture and trade services sectors of demand and supply side. Meanwhile, agriculture sector has the lowest cost of creation a job opportunity in Iran's economy. According to MRI index, correlation coefficient is 61/5% among the economy sectors of production and employment. Whereas, viewpoint of employment and value added this coefficient is -9%.Thus, according to this index, economy sectors cover one path by viewpoint of production and employment but by viewpoint of employment and value added those cover different path generally.

Financial systems are classified as bank-based systems and market-based systems. In bank systems, savings are gathered and credits are allocated by banks. In market systems, capital market helps the capital accumulation and economic development and supplies resources required for economic activities through providing savers with profitable investment opportunities. While these two systems exist in many countries, their importance (weight) varies from one country to another. In Iran, although the financial system is bank- based, the creation, establishment and maintaining an efficient, transparent, and sound capital market are required for improvement of the business environment, and in contrast, the environment affects the development, size and depth of the capital market. Iranian capital market has been seriously considered by general policies of the Article 44 of the Constitution of Islamic Republic of Iran and the relevant Act, the Fourth Development Plan, and general policies of the Fifth Development Plan. In order to make an efficient capital market and to meet expectations from it, we need to recognize effects of the business environment on the capital market and vice versa. The Paper is intended to provide this recognition. The Paper primarily examines the materiality of the financial system and financial development and then it describes capital market. Also, it analyzes factors affecting the capital market, including legal environment, economic environment, social and cultural environment, information and communication technology, and payment and settlement technology. Then it discusses current conditions in Iran and improvement opportunities in relation to the above mentioned factors. Finally, the paper clarifies the implications of a developed capital market from the view points of the capital availability, liquidity, risk distribution, and capital cost and it examines these variables in Iranian capital market.