Files
hermes-brain/projects/passepartout/strategy/compliance/compliance-regimes/basel-iii.org
Hermes 6e992cc0c5 Restructure three-pronged → knowledge-layers: collapse 11 files to 3, integrate into main architecture
- Rename 'three-pronged' folder to 'knowledge-layers' — prong metaphor
  was misleading (implied parallel tines), replaced with epistemic layers
  (deductive base, empirical middle, probabilistic oracle — vertical stack)
- Collapse 11 overlapping files into 3 coherent documents:
  - knowledge-layers/_index.org: core framework (two engines + one store,
    World Model formula, 0-14 layer table, provenance store design,
    conflict resolution, cold-start, stage mapping)
  - knowledge-layers/practical-implications.org: design-world-aware-of-
    physics, 10 powers, Schafmeister existence proof, epistemic transparency
  - knowledge-layers/neurological-empirical.org: neural networks in
    provenance framework (kept intact)
- Relocate wolfram/mathematica and Schafmeister docs to ideas/viability/
- Integrate into main architecture _index.org:
  - Gate: expanded from two vectors (ACL2+LLM) to three (deductive,
    provenance/empirical, LLM oracle)
  - Autodidactic loop: split into Track 1 (deductive hardening, fast)
    and Track 2 (empirical validation, slow, experimental-feedback-driven)
  - See also: added Knowledge Layers cross-reference
- Add all-lisp geometry engine note (ideas/lisp-geometry-engine.org) as
  concrete illustration of the empirical layer's effect on design work
- Rebuild site: 148 files, 0 errors
2026-06-04 19:09:44 +00:00

1.5 KiB

Basel III

Basel III (Bank for International Settlements — Basel Committee)

International banking regulatory framework (BIS Basel Committee). Sets minimum capital requirements, liquidity coverage ratio (LCR), net stable funding ratio (NSFR), leverage ratio, and counterparty credit risk requirements. National implementation via local regulators (Federal Reserve, ECB, PRA, BOJ, etc.).

Who must comply: All internationally active banks. Systemically important financial institutions (G-SIBs) face additional surcharges.

Penalties: Capital adequacy violations trigger regulatory intervention at increasing severity — restrictions on dividends, mandatory capital raising, management replacement, resolution.

Why it matters: Basel's risk-weight calculation is rule-heavy and verification-friendly. The gate stack can encode credit risk weight mappings and produce auditable proof that capital calculations follow the correct methodology. First-mover advantage: Basel compliance is done via spreadsheets and specialized risk platforms. No platform uses formal verification for risk-weight mapping correctness. A $100K/yr Basel gate package for a G-SIB is a trivial expense relative to the capital requirement penalty of getting the mapping wrong.

Part of the compliance framework index.