Basel III
BankingDefinition
International regulatory framework agreed by the Basel Committee in 2010 (post-GFC). Sets minimum capital, leverage, and liquidity standards for major banks worldwide.
Three pillars: minimum capital requirements, supervisory review, market discipline. Major US implementation: Dodd-Frank stress tests, capital buffers, SLR (supplementary leverage ratio). Basel IV ("the endgame") was set for 2025-2028 implementation but is being negotiated down by US regulators.
Three pillars: minimum capital requirements, supervisory review, market discipline. Major US implementation: Dodd-Frank stress tests, capital buffers, SLR (supplementary leverage ratio). Basel IV ("the endgame") was set for 2025-2028 implementation but is being negotiated down by US regulators.