Abstarct: Undoubtedly, one of important factor in reducing unemployment rate is generating demand for new labor force through productive and employment-baxsed investment and creating new job opportunities. Increasing the volume of bank credit increases investment and consumer expenditure, and on the other hand changes in investment and consumer expenditure will increase employment rates. due to the importance of the unemployment problem, this study survey the effect of the ratio of banking loans to deposits on unemployment rate in the Iranian provinces during the period 2006-2017. In addition to banking loan and deposits, the effects of other macroeconomic variables such as inflation, capital stock and provincial output have also been investigated. The econometric model is estimated using Eviews software and panel data approach. Data on unemployment rate, volume of deposits and banking loans of the Central Bank of the Republic islamic of Iran has been taken. In the result of analysis it has been determined that the variables ratio of banking loan to deposits, capital stock and provincial products have a positive and significant relationship with unemployment and the relationship between inflation and unemployment is negative and significant. According to the results, it can be said that one percent increase (decrease) in the variable ratio of banking loan to deposits led to a 2.335 percent increase (decrease) in the unemployment rate. Furthermore, it is recommended to consider loan payment, the approach of identifying the individual and professional abilities of applicants, information clarification, support of other financial markets, lubrication the financing of firms and procedures for limiting unprofitable firms and supporting productive firms.