The international framework, drawn up after the 2007 to 2009 crisis, that raised bank capital and introduced liquidity and leverage requirements. It is applied through national rules.
Where you will meet it
Basel III comes up in 15 learning outcome notes across the FRM syllabus.
A few of them:
Banks FRM Part I · Financial markets and products
“After the 2007-09 crisis Basel III raised the quality and quantity of capital.”
The Governance of Risk Management FRM Part I · Foundations of risk management
“Basel III raised the quality and quantity of capital and added a leverage ratio, the liquidity coverage ratio and the net stable funding ratio.”
Margin (Collateral) and Settlement FRM Part II · Credit risk measurement and management
“Under Basel III, counterparty credit exposure uses SA-CCR, the standardized approach.”
Liquidity Risk FRM Part II · Liquidity and treasury risk measurement and management
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