Study of Capital Formation Process in Economy of Iran Emphasizing The Role of Banks and Insurance Companies

Today, economists believe that the authorities of developing countries may supply internal saving level and finally mobilize capital resources with the aid of foreign capitals, leading to possible increase in capital investments in these countries. Alternatively, there is a second solution, that is, mobilization and directionof the funds available at the country towards industrial productive activities. A characteristic of developing countries includes distribution and disorder of savings and capitals so that capitals can not be optimally directed. In order to optimize financial resource turnovers in these economies, the necessity of establishingefficient and powerful markets along with proper financial organizations active in these markets is of the most important factors affecting increased investment and, subsequently, growth and development. In almost all developing countries, there are no proper financial organizations and or powerful financial systems, or if not, they are very limited or at a basic level. Therefore, they may not readily play a crucial role in mobilizing and directing the available funds towards roductive activities, and are not efficient and effective in improving economic structures of the countries.