Banks provide important services for their customers and supply credit to the economy, which is why they are highly regulated. One of the external regulations is the risk weighted equity capital system. It is concerned with the resilience of banks and their robustness against economic shocks. The system requires, that banks keep certain amounts of regulatory capital as a safety measure. With the introduction of Basel III, the safety measures become stricter and the overall regulatory capital levels are gradually increasing. The goal of the thesis is to empirically analyse, how different levels of regulatory capital influence the credit volume in Austria. In connection to the credit volume, I describe the phenomenon of credit crunches, the relationship to different levels of regulatory capital and if Austrias economy experienced a credit crunch. I used balance sheet data of the three biggest banks in Austria, the Erste Bank, the Bank Austria and the Raiffeisen Bank. Additionally, to the individual banks data, I examine aggregated data for Austria as well. I find mostly negative relationships between the regulatory capital and the credit volume, which is similar to the literatures findings on the topic.The thesis is divided into three parts, in part one I describe the theoretical background of the capital structure of companies, the special role banks play in the economy and how the regulatory capital level can influence banks lending behaviour.In part two I analyse the phenomenon of credit crunches, their effects on the economy, their relationship to the regulatory capital and why it is difficult to identify a clear source for credit crunches.Part three is the empirical part, in which I specify the model, describe the results and give an interpretation. The model shows, that there is a mostly negative relationship between regulatory capital and credit volume. As to the credit crunch, there is no clear sign for a credit crunch in Austria.