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Finance & Banking vocabulary · Regulation & Compliance

Basel III

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, Basel III means: A set of international banking rules agreed by the Basel Committee after the 2008 global financial crisis. It requires more and better capital and adds liquidity and leverage limits.

In Turkish: Basel III, Basel III düzenlemeleri

How it is used

Said 'Basel three'. Used in regulation, risk and capital planning. It introduced the liquidity coverage ratio (LCR), the net stable funding ratio (NSFR) and the leverage ratio. Countries adopt it in stages; the final reforms are sometimes called Basel IV.

Example sentences

  1. Under Basel III, banks must hold more high-quality capital than before.

  2. The Basel III liquidity rules changed how we manage our bond portfolio.

Common collocations

  • Basel III rules
  • Basel III requirements
  • under Basel III
  • Basel III implementation
  • capital adequacy ratioA bank's capital divided by its risk-weighted assets. It shows whether the bank has enough capital to absorb losses; Basel rules require at least 8% before extra buffers.
  • regulatorA public body that makes and enforces the rules for an industry. Banking regulators license banks, set capital rules and inspect banks.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • leverageUsing borrowed money to finance assets or investments, or the level of a company's debt compared with its equity or earnings.

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.