Basel III

Definition:

Describes the third version of the Basel Accords agreed upon by 27 countries on September 12, 2010. Among the highlights was the increasing of Tier 1 capital from 2% to 4.5% and the addition of a buffer of 2.5%. The assets that qualify for capital were also redefined. The full implementation of the accord is not due until 2023.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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