The G20 Summit in Seoul from November 11 to 12, 2010 endorsed the Basel III Accord as the core elements of the new financial regulatory framework. The accord was mainly designed for banks in advanced industrialized economies with mature and well-developed financial markets in response to the Global Financial Crisis (GFC) of 2007-9.
It has not, however, addressed the needs of emerging economies that are increasingly playing a prominent role in global finance.
The accord is the basic foundation for transforming the global financial system, coordinated by the Financial Stability Board (FSB), into a safer system and to ensure its resilience to periodic stress tests.
Basel III was developed by the Basel Committee on Banking Supervision (BCBS) and adopted by the Group of Governors and Heads of Supervisions of member countries of the Bank of International Settlement (BIS...