Basel III refers to the capital and liquidity regulations for banks adopted by the Basel Committee on Banking Supervision in 2010.
The aim was to improve the regulation of the banking sector and increase the stability of the financial system. The Basel III framework introduced higher capital requirements for banks, strengthening their resilience to economic shocks and financial crises. In addition, new liquidity rules were introduced to ensure that banks are sufficiently liquid in times of crisis.
Basel III also defined new standards for the assessment and management of risks, especially credit risk, and required greater disclosure of information by banks.
The Basel III framework was implemented gradually over the following years, with full implementation only taking place in 2019. Basel III has contributed significantly to strengthening the stability of the financial system and has improved the regulation and supervision of the banking sector worldwide.
