We examine the relation between capital and liquidity creation. This issue is interesting because of the potential … impact on liquidity creation from tighter capital requirements such as those in Basel III. We perform Granger-causality tests … large banks. We show that capital negatively Granger-causes liquidity creation in this industry, where majority of banks are …

This paper contributes to the debate on the effect of capital requirements on bank efficiency. We study the relation … between capital ratio and bank efficiency for Chinese banks over the period 2004−2009, taking advantage of the profound … which depends to an extent on the bank's ownership type. Our results therefore suggest that capital requirements can improve …

requirements and those of increased liquidity creation. -- bank capital ; liquidity creation …This paper examines the relationship between capital and liquidity creation. This issue is of interest to determine the … potential impact of tighter capital requirements such as those involved in Basel III reforms on liquidity creation. We perform …