Tax Glossary Definition
Basel III – An international set of banking regulations established by the Basel Committee on Banking Supervision to improve financial institutions’ capital strength, liquidity standards, and overall risk control. Introduced in response to the 2008 global financial crisis, Basel III aims to make the banking sector more resilient to economic shocks and systemic risks.
Example: Under Basel III norms, banks are required to maintain a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5% to better withstand financial stress.
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