Précis

The Global Financial Crisis led to unprecedented regulatory tightening and worldwide concern about the financial system’s ability to foresee and withstand another shock of this nature. International regulatory and policymaking authorities including Central Banks, The Basel Committee, G20 and other blocs worked overtime to strengthen banking and corporate governance structures on the inside. The Basel Accord took center stage, as regulators looked at overcoming the weaknesses of the second pillar to come up with a new set of capital recommendations under Basel III during the G20 summit last July.

This article take a quick look at what Basel III hopes to achieve and how it might impact banking institutions around the world.