Basel III is an international set of banking regulatory standards on capital adequacy, stress-tested liquidity buffers, and leverage limits, developed by the Basel Committee on Banking Supervision in response to the 2007-2009 global financial crisis.
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- Basel III was developed in response to the financial crisis of 2007 to 2009 and strengthens bank capital requirements, introduces borrowing and liquidity standards, and improves risk coverage. It is issued by the Basel Committee on Banking Supervision.
- The framework raises the quality and quantity of regulatory capital that banks must hold and adds buffers intended to absorb losses during stress. National authorities transpose the standards into local rules.