According to the Competitiveness Report of 2016-17, Iran's economy was 131st in terms of the level of financial market development among 138 countries, indicating the ineffectiveness of financial markets in Iran. Considering that the important sub-components of financial market development are mainly related to banking sector, and that the financing system is bank-oriented in Iran, this indicates that the major cause of inefficiency of the country's financial markets is the poor functioning of the banking system. According to the World Economic Forum, it is not yet possible to provide facilities to investment projects in the country without depositing bonds, which indicates that there is no system devised for rating the credit of individuals in the banking sector. Furthermore, the amount of the capital of banks in the country is low compared to international standards, in such a way that most banks need government funding to avoid bankruptcy. In addition, the official determination of the rate of financial services (commission), as well as interest rates on deposits and facilities by the central bank has in some cases created moral hazard in the banking system and a somewhat race to the bottom among banks to attract deposits with higher interest rates.