The three pillars of Basel III are market discipline, Supervisory review Process, minimum capital requirement. Basel III framework deals with market liquidity risk, stress testing, and capital adequacy in banks. You can read about the Basel III Norms – Regulations by Basel Committee on Banking Supervision in the given link.
The objective of Basel Norms III is to increase the liquidity of banks and decrease bank leverage. Basel III Accord was developed by the Basel Committee on Banking Supervision (BCBS).It was developed in response to the shortcomings in financial regulations exposed during the financial crisis of 2007-08.
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UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure |
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