Basel III

Basel III is a global regulatory framework designed to strengthen banks' capital requirements and improve their ability to manage financial risks. After the 2008 financial crisis, it was recognized that many banks did not have enough capital to weather economic downturns. Basel III requires banks to hold more high-quality capital, maintain better liquidity, and reduce leverage. This helps ensure that banks remain solvent, protect depositors, and contribute to the stability of the financial system, reducing the risk of future crises and safeguarding the economy.