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Capital and regulation

Basel III

The global set of banking rules, agreed after the 2008 crisis, that strengthened capital, liquidity and leverage standards.

Basel III is the framework issued by the Basel Committee to make banks more resilient. It raised the quality and quantity of capital, introduced the Liquidity Coverage Ratio and the Net Stable Funding Ratio, and added a leverage ratio backstop.

National regulators translate it into local rules, so the detail varies by region, but the core standards are shared across the major banking systems.

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