The Basel Rules

The Basel Rules are international standards set by the Basel Committee on Banking Supervision to ensure banks operate safely and remain stable. They specify how much capital banks must hold to cover potential losses, making sure they can withstand financial stresses. These rules also encourage banks to manage risks wisely and improve transparency. By doing so, they help prevent bank failures that could lead to economic crises and protect people's savings and the broader economy. Overall, the Basel Rules promote a strong, resilient banking system worldwide.