Basel III International Banking Framework
The Basel III standards of the Basel Committee on Banking Supervision as consolidated in the Basel Framework (current text generated from bis.org on 26 September 2026): scope and G-SIB assessment (SCO), the definition of capital (CAP), minimum risk-based capital of 4.5% CET1, 6% Tier 1 and 8% total capital with the 72.5% output floor phased in to 2028 and the conservation, countercyclical and systemic buffers (RBC), credit risk under the standardised and IRB approaches, securitisation and counterparty credit risk (CRE), market risk and CVA (MAR), operational risk (OPE), the 3% leverage ratio (LEV), the liquidity coverage and net stable funding ratios (LCR, NSF), large exposures (LEX), margin for non-centrally cleared derivatives (MGN), the supervisory review process (SRP) and Pillar 3 disclosure (DIS). 56 leaves, one per requirement-bearing chapter or chapter group, each citing the Basel Framework paragraphs it restates; national implementation dates differ by jurisdiction.
Basel III International Banking Framework is a compliance framework from International with 12 domains and 56 controls that map to 2 other frameworks. The largest domains are Credit risk RWA (CRE) – Basel III International Banking Framework (14 controls), Supervisory review process (SRP) – Basel III International Banking Framework (9 controls), Market risk and CVA RWA (MAR) – Basel III International Banking Framework (7 controls). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (12)
Credit risk RWA (CRE) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::CRE20 | Assign standardised risk weights by exposure class after counterparty due diligence |
| basel-iii-international-banking-framework::CRE20-RE | Classify real estate exposures and apply LTV-based and currency mismatch risk weights |
| basel-iii-international-banking-framework::CRE21 | Use only eligible ECAI ratings consistently and apply the multiple-rating and issue/issuer rules |
| basel-iii-international-banking-framework::CRE22 | Recognise credit risk mitigation only when legal, operational and haircut requirements are met |
| basel-iii-international-banking-framework::CRE30-31 | Obtain approval, roll out the IRB approach by asset class and apply the prescribed risk-weight functions |
| basel-iii-international-banking-framework::CRE32-33 | Apply IRB risk component rules, input floors and supervisory slotting |
| basel-iii-international-banking-framework::CRE34-35 | Capitalise purchased receivables for default and dilution risk and compare expected loss with provisions |
| basel-iii-international-banking-framework::CRE36 | Meet the minimum requirements for IRB approval and ongoing use |
| basel-iii-international-banking-framework::CRE40 | Meet securitisation risk transfer, due diligence and hierarchy of approaches requirements |
| basel-iii-international-banking-framework::CRE41-45 | Calculate securitisation capital under SEC-SA, SEC-ERBA, SEC-IAA and SEC-IRBA with STC and NPL adjustments |
| basel-iii-international-banking-framework::CRE50-53 | Measure counterparty credit risk exposure with SA-CCR or an approved internal model |
| basel-iii-international-banking-framework::CRE54-56 | Capitalise CCP exposures, trading book CCR and SFTs below minimum haircut floors |
| basel-iii-international-banking-framework::CRE60 | Risk-weight equity investments in funds using look-through, mandate-based or fall-back approaches |
| basel-iii-international-banking-framework::CRE70 | Capitalise unsettled transactions and failed trades from the trade date |
Definition of capital (CAP) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::CAP10 | Include only instruments that meet the CET1, Additional Tier 1 and Tier 2 eligibility criteria |
| basel-iii-international-banking-framework::CAP30 | Apply the regulatory adjustments and deductions to capital |
| basel-iii-international-banking-framework::CAP50 | Maintain prudent valuation systems, controls and valuation adjustments for fair-valued positions |
Disclosure requirements (DIS) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::DIS10 | Publish a standalone, board-governed Pillar 3 report at the required frequency and assurance level |
| basel-iii-international-banking-framework::DIS20-21-35 | Disclose key metrics, risk management approach, RWA overview, modelled versus standardised RWA and remuneration |
| basel-iii-international-banking-framework::DIS25-26-30 | Disclose capital composition, capital instruments, TLAC, distribution constraints and accounting to regulatory linkages |
| basel-iii-international-banking-framework::DIS40-45 | Disclose credit risk, counterparty credit risk, securitisation and sovereign exposures |
| basel-iii-international-banking-framework::DIS50-70 | Disclose market risk, CVA risk, operational risk and IRRBB |
| basel-iii-international-banking-framework::DIS75-85-31 | Disclose macroprudential indicators, leverage ratio, liquidity and asset encumbrance |
Large exposures (LEX) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::LEX10-40 | Limit and report large exposures to counterparties and connected groups |
Leverage ratio (LEV) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::LEV10-30 | Maintain a Tier 1 leverage ratio of at least 3% on a correctly measured exposure base |
| basel-iii-international-banking-framework::LEV40 | Meet the G-SIB leverage ratio buffer with Tier 1 capital |
Liquidity standards (LCR, NSF) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::LCR10-20 | Maintain a Liquidity Coverage Ratio of at least 100% and report it at least monthly |
| basel-iii-international-banking-framework::LCR30 | Hold HQLA that meet the eligibility, operational and composition requirements |
| basel-iii-international-banking-framework::LCR40 | Calculate total net cash outflows with the prescribed run-off, drawdown and inflow rates and the 75% inflow cap |
| basel-iii-international-banking-framework::NSF10-30 | Maintain a Net Stable Funding Ratio of at least 100% and report it at least quarterly |
Margin for non-centrally cleared derivatives (MGN) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::MGN10-20 | Exchange variation and initial margin on non-centrally cleared derivatives within the thresholds |
| basel-iii-international-banking-framework::MGN20-COLL | Hold eligible, haircut and segregated collateral and restrict rehypothecation of initial margin |
Market risk and CVA RWA (MAR) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::MAR11-12 | Define, document and obtain approval for the trading desk structure and market risk scope |
| basel-iii-international-banking-framework::MAR20-23 | Calculate market risk capital under the standardised approach (sensitivities-based method, DRC and RRAO) |
| basel-iii-international-banking-framework::MAR30 | Obtain supervisory approval for the internal models approach and meet its qualitative standards |
| basel-iii-international-banking-framework::MAR31-32 | Pass risk factor eligibility, backtesting and P&L attribution tests for each IMA trading desk |
| basel-iii-international-banking-framework::MAR33 | Compute IMA capital using stressed expected shortfall, NMRF stress scenarios and a default risk model |
| basel-iii-international-banking-framework::MAR40 | Apply the simplified standardised approach only where eligible and approved |
| basel-iii-international-banking-framework::MAR50 | Calculate CVA risk capital under BA-CVA, SA-CVA or the materiality threshold alternative |
Operational risk RWA (OPE) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::OPE25 | Calculate operational risk capital with the standardised approach (BI, BIC and ILM) |
| basel-iii-international-banking-framework::OPE25-LOSS | Identify, collect and treat internal operational loss data to the minimum standards |
Risk-based capital requirements and buffers (RBC) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::RBC20 | Meet the minimum risk-based capital ratios at all times on RWA that respect the output floor |
| basel-iii-international-banking-framework::RBC25 | Assign instruments to the trading or banking book by the boundary rules and prevent switching |
| basel-iii-international-banking-framework::RBC30 | Hold the capital conservation and countercyclical buffers in CET1 and observe distribution constraints |
| basel-iii-international-banking-framework::RBC40 | Meet the higher loss absorbency requirement for systemically important banks in CET1 |
Scope of application and systemic importance (SCO) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::SCO10-30 | Apply the framework on a consolidated basis and treat unconsolidated financial and insurance subsidiaries correctly |
| basel-iii-international-banking-framework::SCO40 | Submit G-SIB assessment data and publish the 13 indicators where in scope |
Supervisory review process (SRP) – Basel III International Banking Framework
| Code | Title |
|---|---|
| basel-iii-international-banking-framework::SRP10-20 | Support supervisory review and operate above minimum capital requirements |
| basel-iii-international-banking-framework::SRP20-ICAAP | Operate an ICAAP that relates capital to all material risks |
| basel-iii-international-banking-framework::SRP30 | Maintain a firm-wide risk management framework with stress testing, concentration, reputational and valuation controls |
| basel-iii-international-banking-framework::SRP31 | Identify, measure, govern and capitalise interest rate risk in the banking book |
| basel-iii-international-banking-framework::SRP32 | Address residual credit, concentration, counterparty and securitisation risks under Pillar 2 |
| basel-iii-international-banking-framework::SRP33 | Govern trading book boundaries, valuation and market risk stress testing |
| basel-iii-international-banking-framework::SRP35 | Align compensation with prudent risk taking under board oversight |
| basel-iii-international-banking-framework::SRP36 | Meet the risk data aggregation and risk reporting principles (systemically important banks) |
| basel-iii-international-banking-framework::SRP50 | Report the liquidity monitoring metrics, including the intraday liquidity tools, to the supervisor |
Maps to 2 other frameworks
Coverage is not the same as your position
This page shows what Basel III International Banking Framework overlaps with in general. Where your organisation actually stands, against the standard you are going for and the certifications you already hold, is a different question. Same graph and the same recorded refutations, scoped to you rather than to a pair.
The Compliance Position Diagnostic, $5,000 fixed, ten business daysWhat is Basel III International Banking Framework and who does it apply to?
Basel III International Banking Framework is a compliance framework from International with 12 domains and 56 controls. The Basel III standards of the Basel Committee on Banking Supervision as consolidated in the Basel Framework (current text generated from bis.org on 26 September 2026): scope and G-SIB assessment (SCO), the definition of capital (CAP), minimum risk-based capital of 4.5% CET1, 6% Tier 1 and 8% total capital with the 72.5% output floor phased in to 2028 and the conservation, countercyclical and systemic buffers (RBC), credit risk under the standardised and IRB approaches, securitisation and counterparty credit risk (CRE), market risk and CVA (MAR), operational risk (OPE), the 3% leverage ratio (LEV), the liquidity coverage and net stable funding ratios (LCR, NSF), large exposures (LEX), margin for non-centrally cleared derivatives (MGN), the supervisory review process (SRP) and Pillar 3 disclosure (DIS). 56 leaves, one per requirement-bearing chapter or chapter group, each citing the Basel Framework paragraphs it restates; national implementation dates differ by jurisdiction. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
What does Basel III International Banking Framework actually require?
Basel III International Banking Framework has 56 controls organised across 12 domains. The largest domains are Credit risk RWA (CRE) – Basel III International Banking Framework (14 controls), Supervisory review process (SRP) – Basel III International Banking Framework (9 controls), Market risk and CVA RWA (MAR) – Basel III International Banking Framework (7 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
If I already comply with another framework, how much of Basel III International Banking Framework do I already cover?
Basel III International Banking Framework maps to 2 other compliance frameworks. The top mapping partners are Basel Core Principles for Effective Banking Supervision (2024) (19% coverage), BCBS 239 (10% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I implement Basel III International Banking Framework?
Start your Basel III International Banking Framework compliance journey by running a self-assessment on our platform to identify your current compliance posture. Our AI advisory can answer specific questions about Basel III International Banking Framework requirements, and cross-framework mapping helps you leverage existing controls from other frameworks you may already comply with. Create a free account to access all 56 controls and track your progress.
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