From Wikipedia, the free encyclopedia
|Bank regulation and standards|
|Bank for International SettlementsBasel Accords (Basel I, Basel II, Basel III, Basel IV)Financial Stability Board|
|Banking (Regulation)Monetary policyCentral bankRiskRisk managementRegulatory capitalTier 1Tier 2|
|Pillar 1: Regulatory capital|
|Credit risk StandardizedIRB Approach F-IRBA-IRBPDLGDCCFEADOperational risk BasicStandardizedAMAMarket risk DurationValue at risk|
|Pillar 2: Supervisory review|
|Economic capitalLiquidity riskLegal risk|
|Pillar 3: Market disclosure|
|Business and Economics Portal|
Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. This third installment of the Basel Accords (see Basel I, Basel II) was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage.
Basel III was agreed upon by the members of the Basel Committee on Banking Supervision in November 2010, and was scheduled to be introduced from 2013 until 2015; however, implementation was extended repeatedly to 31 March 2019 and then again until 1 January 2022.