To check if the results in Table 3a differ with alternative measures,we repeat VAR estimates using liquidity creation that excludesoff-balance sheet items (LC2) and return on assets (ROA) for bankprofitability. For brevity, we only report the results on the sum oflagged coefficients of each key variable without tabulating the controlvariables. Panel A of Table 3b shows that the positive bidirectionalrelationship between regulatory capital and liquidity creation, andthe negative impact of liquidity creation on bank profitability reportedearlier are robust.The results of the interrelationships using ROA are largely consistentwith those using ROE. Panel B of Table 3b shows that the bidirectionalrelationship between regulatory capital and liquidity creation remainpositive across three measures of capital. Regulatory capital and liquiditycreation also continue to have an adverse effect on bank profitability.Given that the results using LC2 and ROA are generally consistent withthose of LC1 and ROE,we only tabulate results of the latter in our subsequentanalyses.