The effect of interest rates on facilities granted by the country's banks in accelerating Iran's economic growth

The economic literature has scrutinized financial development from various dimensions; In this regard, what is important about bank-based financial systems is the distribution of facilities granted between economic sectors. In fact, in non-competitive markets, with the feature of incomplete and incomplete information, any distribution of facilities based on maximizing the profits of banks does not necessarily lead to the maximization of collective resources and can have consequences for society as a whole. With regard to this issue, the present article seeks to investigate the role of distribution of banking facilities among sectors of the economy on economic growth in Iran. For this purpose, using the time series data of 1370-1398 and the self-correlation method with distributed interrupt (ARDL) has been used. The results show that the logarithm coefficient of the financial development index (ratio of total facilities to GDP) in the short and long term is positive and significant, which indicates the positive role of development in economic growth. On the other hand, the logarithm coefficient of the residual ratio of production facilities to non-production facilities has also been positive and significant in the short and long term, which shows the positive effect of production facilities. In other words, increasing bank facilities relative to (GDP) has a positive effect on economic growth, but the more the tendency of these facilities towards production facilities, the more positive economic growth will be affected.