Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision to strengthen the regulation, supervision, and risk management of banks, particularly in response to the deficiencies in financial regulation revealed by the 2007-2008 financial crisis. It aims to improve the banking sector's ability to absorb shocks arising from financial and economic stress, improve risk management and governance, and strengthen banks' transparency and disclosures.

Basel III

comprehensive set of reform measures

Basel Committee on Banking Supervision

Regulation refers to the rules and guidelines set by authorities to control and govern conduct within specific industries or sectors, ensuring compliance, safety, and fairness. It plays a crucial role in maintaining order, protecting consumers, and promoting fair competition by setting standards and enforcing accountability among entities.

regulation

Supervision involves guiding, overseeing, and managing individuals or teams to ensure tasks are completed effectively and objectives are met. It requires a balance of authority, support, and communication to foster productivity and development within an organization or educational setting.

Supervision

Risk management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. It is essential for ensuring that an organization can achieve its objectives while safeguarding its assets and reputation against potential threats.

risk management

Banks are financial institutions that accept deposits from the public, create credit, and provide loans, playing a crucial role in the economy by facilitating financial transactions and influencing monetary policy. They operate under strict regulations to ensure stability and protect consumers, while also driving economic growth by allocating capital efficiently.

banks

Financial regulation refers to the oversight and management of financial institutions and markets to ensure stability, transparency, and consumer protection. It involves a complex framework of laws, rules, and guidelines designed to prevent systemic risks and promote fair competition in the financial sector.

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