The Impacts of Technical Changes on Banking Economic Indices, Case Study of Iran

Payment systems play a major part in the conduct of a country s monetary policy, financial sector and economic development. The use of technology in mature payment systems has also gained great importance. Electronic banking, mobile phones, smart cards and related technologies has introduced the new instruments for payment. So payment could be in different forms, from the most initial ways to the most advanced electronic one. In this paper, we have studied the economic effects of a new technology of payments in banking industry by using Iranian bank level panel data. Electronic payment in banking industry leads to decrease average costs, increase the economic of scale in the attraction deposits more than in the giving loans and finally will affect input demand asymmetric. By using this new technology, the ratio of labour and both materials and physical capital have been decreased.