Basel III defines capital, leverage, liquidity and net stable funding ratios

they're in the form of formulas, and regulations require minimum thresholds to be met

I previously wrote about Basel III and its importance in financial markets here ⬇️
https://illya.sh/threads/@1753631798-1.html

Illya Gerasymchuk 2025-08-05 21:48

banks are also subject to regulations when issuing loans

and no - it's not the fractional reserve system

in many sovereigns, like the USA the reserve requirements sit at 0%

there are other regulatory requirements limiting loan issuance