•The credit creation process has both endogenous and exogenous origins.•Basel III factors display limited effectiveness regarding the credit creation process.•Covid-19 pandemic has a rather small positive effect on the credit creation process. This paper re-examines the exogeneity/endogeneity debate regarding the credit creation process for the Eurozone banking system under the Basel III framework. A two-stage theoretical approach is employed to assess an equity/credit multiplier model and a credit creation model. The results reveal the existence of a mixed outcome (driven by aggregate demand and Basel III factors) regarding the credit creation process for the sample countries and the period under examination. The active but limited effectiveness of the Basel III factors upon the Eurozone banking system is revealed, providing important information for policymakers.