Basel III Framework

Basel III is an international banking regulatory framework established to strengthen the regulation, supervision, and risk management of banks. After the 2008 financial crisis, it introduced stricter capital requirements, ensuring banks hold enough capital to cover potential losses. This includes higher quality capital, improved liquidity standards, and better risk assessment practices. The aim is to enhance the banking sector’s resilience to financial shocks, protect depositors, and promote stability in the global economy, making banks safer for both customers and the overall financial system.