Pages: 9-16

Abstract

Measuring the financial progress and portraying the functions of financial systems such as reducing information and cost of transaction, equipping and leading the resources to the production sectors and facilitating financial exchanges are the problems which make the study of financial transfers' relationship difficult. This study aimed to examine the relationship between the international transfers and the development of banking sector. The statistical population includes developing and developed countries. This is an applied study. After calculating all necessary variables for the models of this research, they were combined in a working sheet to be transferred to EVIEWS software electronically and analyzed based on SLS3 simultaneous studies. The results of study showed a significant relationship between currency transfer and the development of banking sector. This relationship was bilateral. First, the increase in the currency transfers can increase the development of banking sector. Second, development of banking sector also increases the currency transfers in developing countries.