The Basel III Accord is a set of international banking regulations developed by the Basel Committee on Banking Supervision (BCBS). It was formulated in response to the financial crisis of 2007-2008 and aims to improve the banking sector's resilience to financial and economic stress and improve its risk management by

Increasing capital adequacy requirements Banks need to hold more capital relative to their risk-weighted assets to absorb potential losses during financial stress. Enhancing liquidity standards Banks need to maintain a sufficient level of liquid assets to meet their short-term obligations. Strengthening risk management practices Banks are required to implement more robust risk management frameworks to identify, measure, and manage various risks they face.