The Basel III rules aim to strengthen banks' ability to manage liquidity risk after the 2007-2009 financial crisis. These rules set new standards for capital and liquidity management, including the Liquidity Coverage Ratio and Net Stable Funding Ratio. Banks must comply with these rules by January 1, 2019, to ensure they have enough liquidity to withstand shocks. The Kosovo banking sector has shown positive performance, contributing to the country's financial stability.