capital adequacy

Basel III: Enhancements to Basel II: System-wide changes & Increased Stress Testing

3 mins read

Basel III seeks to enhance the Basel II framework by addressing both firm-specific risk as well as system-specific systemic risk factors. Here, we will discuss some of major improvements being made to the Basel II framework on a macro-prudential system-wide basis as well as the greater role that stress testing will play in the process.