Capital requirements of European banks - statistics & facts
The Basel III accords were developed on top of the Basel II standards in response to the financial crisis of 2007 and 2008 as a voluntary framework of regulations to ensure banks around the world are meeting a minimum capital ratio. The Basel III accords were designed to strengthen a bank's capital requirements by increasing bank liquidity (the ability that bank has to meet its financial obligations when due) and decreasing bank leverage (the use of debt in order to purchase assets). The third installment of requirements, which were agreed upon by the Basel Committee on Banking Supervision, look to mitigate the risk of a further financial crisis and create a more resilient banking system.
