Effect of Financial Liberating on Economic Growth and Development

In today's world, financial and economical liberating and also supporting the various national and global markets are highly important. Forming stability and constant growth by use of financial development is also emphasized in economical discourses. Financial development needs financial tools including efficient banking system which this efficiency will be reached by competitiveness and financial liberating. Previous studies prove that in order to benefit from effects of financial liberating on financial development we should create institutional and legal infrastructures and also information clarity in financial market. In case of developing countries such as Iran we observe that financial liberating has negative effect on economic growth which this issue could be due to lack of development in financial markets of Iran, financial liberating also has positive effect on investing which this matter could be due to high potential capacity of Iran's economy in attracting the capitals. In this research, we analyzed the role of privatization of banks in financial liberating and economic growth and also effect of financial liberating on Islamic developing countries including Iran. At the end we concluded reinforcing the financial system by means of implementing financial liberating strategies will result in achieving stable economic growth in long term.