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ideas/compliance/basel-iii.org
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:PROPERTIES:
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:ID: auto-basel-iii
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:CREATED: [2026-05-23 Sat]
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:END:
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#+title: Basel III (Bank for International Settlements — Basel Committee)
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#+filetags: :passepartout:compliance:framework:basel:
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** Basel III (Bank for International Settlements — Basel Committee)
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International banking regulatory framework (BIS Basel Committee). Sets minimum
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capital requirements, liquidity coverage ratio (LCR), net stable funding ratio
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(NSFR), leverage ratio, and counterparty credit risk requirements. National
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implementation via local regulators (Federal Reserve, ECB, PRA, BOJ, etc.).
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Who must comply: All internationally active banks. Systemically important
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financial institutions (G-SIBs) face additional surcharges.
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Penalties: Capital adequacy violations trigger regulatory intervention at
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increasing severity — restrictions on dividends, mandatory capital raising,
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management replacement, resolution.
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Why it matters: Basel's risk-weight calculation is rule-heavy and
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verification-friendly. The gate stack can encode credit risk weight mappings
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and produce auditable proof that capital calculations follow the correct
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methodology. First-mover advantage: Basel compliance is done via spreadsheets
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and specialized risk platforms. No platform uses formal verification for
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risk-weight mapping correctness. A $100K/yr Basel gate package for a G-SIB
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