Basel III

Basel III is a set of rules created by a group of international banking regulators called the Basel Committee on Banking Supervision. The main goal of Basel III is to make banks safer by requiring them to hold more money in reserves (cash or money held in a bank account) so that banks don't run out of money and can protect themselves if there are unexpected losses. Banks also need to report more data about the way they manage risks. Finally, Basel III sets standards for the quality of certain kinds of investments banks make. These rules are important because they help make sure that banks can always give their customers the money they have stored in their accounts.