BaselIIIisacomprehensivesetofreformmeasuresdevelopedbytheBaselCommitteeonBankingSupervisiontostrengthentheregulation,supervision,andriskmanagementofthebankingsector.Itwasintroducedinresponsetothefinancialcrisisof2007-2009,aimingtoimprovethebankingsector'sabilitytoabsorbshocksarisingfromfinancialandeconomicstress,reducetheriskofspilloverfromthefinancialsectortotherealeconomy,andenhancetransparencyandriskdisclosure.Theframeworkfocusesonthreemainpillars:minimumcapitalrequirements,supervisoryreviewofcapitaladequacy,andmarketdisciplinethroughdisclosure.Keycomponentsincludehighercapitalratios,theintroductionofleverageandliquidityratios,andmeasurestoaddresssystemicriskandinterconnectedness.BaselIIIbuildsuponthefoundationsofBaselIandBaselII,incorporatinglessonslearnedfromthecrisistocreateamoreresilientglobalbankingsystem.
