The new Basel III rules make banks increase their capital, which makes it more expensive for them to lend money. This means that banks will charge higher interest rates on loans. The study shows that big banks will need to raise their equity by 1.3% under Basel III, leading to a 16 basis point increase in lending rates. As a result, loan growth will decrease by 1.3% in the long term. Different countries will be affected differently, with Japan and Denmark experiencing a bigger impact on loan growth compared to the U.S.