Basel III introduces new tools to prevent banking crises.
The article compares the old banking rules (Basel II) with the new ones (Basel III) to see if there are any major differences. Basel III introduces new tools like capital buffers, leverage ratios, and liquidity management to make banks safer. These changes aim to prevent financial crises and make it easier to calculate how much money banks need to keep on hand. Overall, Basel III brings some important changes to banking regulations compared to Basel II.