The study tested the idea that in the Iranian economy, money creation is driven by bank loans and deposits rather than by the central bank. Data from 1978-2017 was analyzed using statistical tests. The results confirmed that bank loans and deposits cause the monetary base, supporting the theory of endogenous money supply. This means that in Iran, the money supply is largely determined by commercial banks rather than by the central bank. To manage money supply effectively, the country may need to reconsider its monetary policy.