The 'Basel III' framework, monitored by the BIS, is primarily concerned with:

Solution

• Basel III is an  international regulatory accord  developed by the Basel Committee on Banking Supervision (BCBS) at the  Bank for International Settlements (BIS)  in response to the deficiencies in financial regulation revealed by the 2007-08 global financial crisis. Its three core pillars aim to strengthen the banking sector:
1. Minimum Capital Requirements:  Higher quality and quantity of capital (Common Equity Tier 1).
2. Supervisory Review Process:  Enhanced risk management and supervision, including  stress testing .
3. Market Discipline:  Improved disclosures.
   It also introduced new  liquidity standards  (Liquidity Coverage Ratio - LCR, Net Stable Funding Ratio - NSFR) to prevent short-term bank runs.