New Basel Capital Accord

The New Basel Capital Accord, also known as Basel III, is an international banking regulation that aims to strengthen the stability and resilience of the financial system. It sets higher standards for banks’ capital reserves—funds kept to cover potential losses—ensuring they can absorb shocks during economic downturns. Basel III also introduces measures to improve risk management, promote transparency, and reduce excessive borrowing. Overall, it seeks to make banks safer so they can better withstand financial crises, protecting depositors and the economy.