Attention for global regulatory changes and their effects in emerging economies has increased since 1 January 2013 marked the beginning of the implementation period of the third Basel Accord, commonly known as Basel III. The accord was called into life as a successor to Basel II, to restrain and stabilize international financial markets in the wake of the 2008 global financial crisis. Basel III was created by the Basel Committee on Banking Supervision, which sought to ease the deficiencies that had become evident during the crisis — high leverage ratios and very low capital requirements. Over the phasing in period of 2011-2019, Basel III will impose stringent requirements on bank capital, liquidity and bank leveraging. Implementing the accord can pose a challenge even for developed capital markets, while for developing countries there is widespread concern implementation without due regard to the principle of proportionality could lead to unintended consequences that are out of step with the aims of the Basel Committee.
