Basel III
Basel III Accord
Definition
The comprehensive set of reform measures developed by the Basel Committee on Banking Supervision (BCBS) to strengthen the regulation, supervision, and risk management of banks. Basel III introduced higher capital requirements, a leverage ratio, liquidity standards (LCR and NSFR), and the standardised approach for counterparty credit risk.
Regulatory Context
Developed in response to the 2008 financial crisis, Basel III has been implemented in stages with the final reforms (often called Basel 3.1 or Basel IV) being phased in through 2028. Implementation varies by jurisdiction through national legislation such as CRD/CRR in the EU.