Basel III is a comprehensive global regulatory framework developed by the Basel Committee on Banking Supervision (BCBS) in response to the 2007-2009 financial crisis. It strengthens bank capital requirements by requiring higher quality and quantity of capital, introduces new liquidity standards (LCR and NSFR), adds a leverage ratio backstop, and includes countercyclical capital buffers and G-SIB surcharges. The final Basel III package (sometimes called Basel IV) addresses output floor and credit risk model constraints introduced in 2017.
| Attribute | Detail |
|---|---|
| Governing Body | Basel Committee on Banking Supervision (BCBS) |
| Oversight | Group of Central Bank Governors and Heads of Supervision (GHOS) |
| Secretariat | Bank for International Settlements (BIS), Basel, Switzerland |
| Membership | 45 institutions from 28 jurisdictions |
| Implementation Deadline | January 1, 2028 (Basel IV output floor) |
| Standard | Minimum | Description |
|---|---|---|
| CET1 Capital Ratio | 4.5% | Highest quality capital over risk-weighted assets |
| Tier 1 Capital Ratio | 6.0% | CET1 plus AT1 capital |
| Total Capital Ratio | 8.0% | Tier 1 plus Tier 2 capital |
| Capital Conservation Buffer | 2.5% CET1 | Buffer above minimums to absorb losses |
| Leverage Ratio | 3.0% | Tier 1 capital over total exposures |
| LCR | 100% | 30-day liquidity coverage |
| NSFR | 100% | 1-year stable funding ratio |
| Output Floor | 72.5% | Minimum ratio of IRB to SA RWA |
- Basel III Framework (BIS)
- Basel III Final Package - December 2017
- Liquidity Coverage Ratio - January 2013
- Net Stable Funding Ratio - October 2014
See vocabulary/basel-iii-vocabulary.yaml for authoritative definitions of Basel III terms.
See json-ld/basel-iii-context.jsonld for linked data context mapping Basel III concepts.
See examples/basel-iii-capital-requirements-example.json for a structured representation of Basel III capital requirements.
- Kin Lane (kin@apievangelist.com)