What is Basel III in simple terms?

Basel III is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. The measures aim to strengthen the regulation, supervision and risk management of banks.

What is Basel 3 disclosure?

The finalised Basel III framework requires banks to disclose two sets of risk-weighted capital ratios: (i) ratios that exclude the capital floor in the calculation of risk-weighted assets; and (ii) ratios that include the capital floor in the calculation of risk-weighted assets.

What is the Pillar 3 report?

Pillar 3 requires firms to publicly disclose information relating to their risks, capital adequacy, and policies for managing risk with the aim of promoting market discipline.

What is LCR in banks?

The liquidity coverage ratio (LCR) refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations.

What does NSFR measure?

The net stable funding ratio is a liquidity standard requiring banks to hold enough stable funding to cover the duration of their long-term assets.

What is Basel III?

Basel III: international regulatory framework for banks. Basel III is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09.

What is the Basel system?

It is a system of , risk management, and transparency. The regulations are considered to be the most comprehensive set of regulations governing the international banking system. The Basel Accords can be broken down into Basel I, Basel II, and Basel III.

What are the three components of the Basel regulations?

, risk management, and transparency. The regulations are considered to be the most comprehensive set of regulations governing the international banking system. The Basel Accords can be broken down into Basel I, Basel II, and Basel III. Basel I, also known as the Basel Capital Accord, was formed in 1988.

What are the post-crisis regulatory reforms of Basel III?

Finalisation of the Basel III post-crisis regulatory reforms Basel III: Finalising post-crisis reforms (December 2017) Minimum capital requirements for market risk (January 2016, revised January 2019) Liquidity Coverage Ratio (January 2013) Net Stable Funding Ratio (October 2014)