Regulatory Alerts2010-11-01
Basel Committee Report to the G20: Comprehensive Response to the International Financial Crisis
The Basel Committee on Banking Supervision, in coordination with the Group of Governors and Heads of Supervision, has issued the Basel III framework to overhaul global banking regulation following the 2007–2009 financial crisis. The reforms mandate significantly higher quality and quantity of common equity capital, introduce a non-risk-based leverage ratio as a backstop, and establish global liquidity standards including a liquidity coverage ratio and net stable funding ratio. Additionally, the framework incorporates macroprudential measures such as countercyclical capital buffers and enhanced requirements for systemically important banks, with impact assessments indicating modest short-term economic costs but substantial long-term financial stability benefits.