Basel III
The international bank capital and liquidity framework adopted after the 2008 financial crisis. Basel III tightened the definition of regulatory capital, raised minimum ratios (Common Equity Tier 1 to 4.5 percent of risk-weighted assets, total Tier 1 to 6 percent, total capital to 8 percent), introduced new liquidity rules (Liquidity Coverage Ratio and Net Stable Funding Ratio), and added a non-risk-weighted leverage ratio. US implementation has gone through multiple iterations; some final rules are still being phased in. Basel III is the binding regulatory floor for every internationally-active bank.
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