What Is Basel III?
It is a package from the Basel Committee answering the financial crisis of 2007 to 2009, to strengthen regulation, supervision and risk management of banks (BIS).
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1.What is Basel III?
It is a package from the Basel Committee answering the financial crisis of 2007 to 2009, to strengthen regulation, supervision and risk management of banks (BIS).
2.What is capital in a bank?
Capital is part of the funding, not an asset and not cash in a vault; when a loan goes bad the loss reduces capital first.
3.What do risk-weighted assets mean?
Basel III measures minimums as a share of risk-weighted assets, or RWA.
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Sources (5)
- Bank for International Settlements, Basel III (Seite des Basler Ausschusses)
- BIS, Basel Framework RBC20 Calculation of minimum risk-based capital requirements
- BIS FSI, Basel III buffers (Executive Summary)
- BIS, Basel III: A global regulatory framework for more resilient banks and banking systems (revised June 2011)
- Eigene Berechnung (Python/
Education only. Not financial advice.