Basel III Implementation
Basel
III provides both micro and macro-prudential tools to safeguard financial
stability:
—As
a micro-prudential (bank-level) tool, Basel-III would help raise the
resilience of individual banking institutions during periods of stress;
—As
macro-prudential (system-wide) tool it addresses the risks that can build up
across the banking sector or broader economies because of the cyclical nature,
concentrations, and interconnectedness of the global financial industry.