Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 11 41 2024 03 01 Evaluating the effect of liquidity growth rate volatility and real interest rate uncertainty on the performance of the banking industry 195 204 23793 10.30495/ijfma.2024.77564.2112 EN Nematollah Mollakarimi student of finance, Islamic Azad University, Tehran, Iran Mirfeiz Fallah Shams Assistant Professor, Islamic Azad University, Tehran, Iran 0000-0001-7989-8703 Farhad Hanifi Assistant Professor, Islamic Azad University, Tehran, Iran Journal Article 2024 04 17 The current study has investigated the effect of liquidity growth rate and real interest rate deviation on the performance of banking industry and credit institutions in Tehran Stock Exchange during the period of January 2011 to March 2021. In this way, autoregressive vector model, Granger causality test and instantaneous reaction functions have been used to explain the mechanism of the effect of liquidity growth rate and real interest rate deviation on the return of the banking industry index and credit institutions. According to the investigations, there is an inverse relationship between the uncertainty of the real interest rate and the return of the banking industry index in the Tehran Stock Exchange market; But the volatility of liquidity growth does not significantly affect the performance of the banking industry index. Keywords: Liquidity Growth Rate, Uncertainty of Real Interest, Returns of The Banking Industry Index and Credit Institutions, Autoregressive Vector Model, Granger Causality Test http://www.ijfma.ir/article_23793_404e0793ba47ba6ec7b52aefe9ac9cfb.pdf