This paper performs an investigation on the effects of seven variables including growth domestic product, financial deepening, inflation rate, dependency burden, the number of bank’s branches, inflation rates given/charged on bank deposit. The study has been performed on one of Iranian banks named Sina Bank over the period 2006-2011. The implementation of individual regression analysis has detected a positive and meaningful relationship between growth domestic product, financial deepening, inflation rate and the number of branches on one side and bank deposit on the other side. In addition, the study has confirmed a negative and meaningful relationship between two variables of dependency burden as well as interest charged on bank’s clients and bank deposit. However, the result of our survey does not indicate that there was any relationship between interest rate paid to customers and bank deposit.

This research analyzes the effects of financial deepening as well as repression on industrial development in Iran. Using some time series data, the proposed study applies the method originally introduced by Johansen and Juselius (1990) [Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration—with applications to the demand for money. Oxford Bulletin of Economics and statistics, 52(2), 169-210.] to measure the effects of these two factors on market development over the period 1970-2011. The results indicate that as the bank deposit increases, we may expect an increase on financial deepening and market development. On the other hand, as inflation increases, we could easily verify market repression and a reduction on market development. In addition, when there was an increase on loans dedicated to private sector, there was an increase on market development. Finally, there were some evidences to believe that currency devaluation could hurt market development by increasing the price of raw materials and market uncertainty.