To Assess the effect of electronic banking development on decreasing costs of banks (selection of private banks)

Information and communication technology have had the significant effects on human being particularly on economic considerations. e-banking as one of the symbol of development of IT in finance has had many advantages، for example to reduce operation banking cost. In this article we use statistical data of private banks (which were connected to e- banking system) in 2004-2011 for assessing the effect of e-banking development on the cost of banks. We use translog function and panel data techniques. We find not only e-banking development reduce the cost of banks but also increasing the e-branches of banks has had more important effect on decreasing these costs than cards. We use translog function and panel data techniques. We find not only e-banking development reduce the cost of banks but also increasing the e-branches of banks has had more important effect on decreasing these costs than cards. We find not only e-banking development reduce the cost of banks but also increasing the e-branches of banks has had more important effect on decreasing these costs than cards.