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hermes-brain/ideas/compliance/basel-iii.org
2026-05-23 06:35:21 +00:00

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:PROPERTIES:
:ID: auto-basel-iii
:CREATED: [2026-05-23 Sat]
:END:
#+title: Basel III (Bank for International Settlements — Basel Committee)
#+filetags: :passepartout:compliance:framework:basel:
** 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