Banks and Insurance companies have the job of facilitation of economic activities, given their broad interactions, directly or indirectly, to the other sectors of the economy. In this context, the role of these two sectors in the economy is inevitable and unavoidable. This paper aims to investigate the economic importance of insurance and banking sectors by applying the Hypothetical Extraction in two models: Leontief demand-oriented model and Ghosh supply-oriented model. The index of linkage between insurance and banking is a comprehensive criterion for Iranian economy. For this, 20-sector input-output table gathered on 2001 is employed Industry technology assumption to producer's price. The findings show the relative importance of financial institutions resulting from banking industry activities. From the viewpoint of investigating the importance of insurance and banking sectors, results indicate that based on the input-output table of 20011, financial institutions are relatively important in Iranian economy. From the viewpoint importance of insurance sector, results of insurance extraction evidence that insurance is not a key sector of Iranian economy.
