Basel Framework — Capital, Liquidity, and Risk Governance
kind: “framework” The Basel Framework establishes global standards for bank capital adequacy, liquidity risk management, and supervisory review. From Basel I to Basel III, the framework progressively expanded beyond credit risk to include market risk, operational risk, leverage constraints, and systemic resilience. While often perceived as a capital calculation regime, Basel’s deeper role is shaping banks’ internal risk governance, incentive structures, and balance sheet behavior under stress.