E-Banking and the Stability of Money Demand in Iran: A Bound Test Approach

3 Abstract: Electronic Banking has been developed in recent decades. By significant increase in the use of electronic banking tools in ten years, a meaningful transformation in the style services of banking system have been existed, parallel to development of information and communication in other sectors. In general, Electronic banking is a special type of banking services that uses electronic medium such as internet, POS and ATM for giving services to customers. In this paper by using quarterly data between 2002- 2011 and ARDL model, demand function has been estimated and the effects of electronic banking on stability of the function have been surveyed. According to result of CUSUM and CUSUMQ tests, this function is unstable during period. Also, correlation between electronic banking and money demand is positive. Therefore, new electronic tools are essential more than ever and should be considered by policymakers.