Basel III Revises Risk-Based Capital Regulations

Basel III Revisions Intend to Prevent a Run on the Banks

Basel III Revisions Should Prevent a Run on the Banks

The Bank for International Settlements (BIS) was founded in Basel, Switzerland, in 1930 as an international organization to “foster international monetary and financial cooperation and serve as a bank for central banks.” During the last decade, it has promulgated a progression of Basel Accords designed to advise on how much capital major banks need to keep in reserve in order to guard against contemporary financial and operational risks. Its 2010 iteration—Basel III—has just been revised again out of concern that even the most recent capital reserve standards may not provide enough of a safety net.

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