Assessing the Structure of Bank Deposits Market in Iran

The main purpose of this paper is to evaluate the structure of banking structure in Iran and assess the monopoly power factor based on Bresnahan and Lau approach. In this paper, the market situation of monetary in Iran consisted 18 active banks are studied during 2007–2011. By the use of Bresnahan's market power model, it is found that there is no deposit market for pre-said banks in Iranian banking industry. The coefficients estimated by the research model have represented that the hypothesis of perfect competition without any withholding rates and deposit rates can be rejected for the entire market.