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Abstract Using data on bank holding companies in the United States and Europe, this paper analyses the impact of capital and liquidity on bank-lending-growth following the 2008 financial crisis, and the new measures inspired by the Basel III regulatory framework. We find that U.S. banks reinforce their risk absorption capacities when expanding their credit activities. Capital ratios have significant, negative impacts on bank-retail-and-other-lending-growth for large European banks in the context of deleveraging and the "credit crunch" in Europe over the post-2008 financial crisis period. Additionally, liquidity indicators have positive but perverse effects on bank-lending-growth, which supports the need to consider heterogeneous banks' characteristics and behaviors when implementing new regulatory policies. [ABSTRACT FROM AUTHOR]

Abstract: The liquidity requirements and the available liquidity are aspects that are influenced by order-independent and order-specific business processes; they represent dynamic parameters over time, making it difficult for many companies to plan and ensure liquidity. Apart from the complexity of material and financial flows, it is the time gap in the flows of the order fulfillment process which complicates the determination of future liquidity requirements. This paper presents a causal model based on cause-and-effect networks, which takes an integrated look on the material and financial flows derived from the value creation process to identify future liquidity requirements. [Copyright &y& Elsevier]