Basel III is a global regulatory standard on bank capital adequacy, stress testing, and market liquidity risk. It requires banks to use quantitative methods for risk projection and economic capital forecasting, and report results across the organization. Basel III is the third set of reform measures agreed upon by the Basel Committee on Banking Supervision.
Compared with Basel II, Basel III introduced additional regulatory requirements and revised risk calculation methodologies in many areas, including:
Common tasks associated with Basel III compliance include: