This is kinda technical...what's being described here?
First, the quality, consistency, and transparency of the capital base will be raised.
Second, the risk coverage of the capital framework will be strengthened.
Third, the Committee will introduce a leverage ratio as a supplementary measure to the Basel II risk-based framework.
Fourth, the Committee is introducing a series of measures to promote the build up of capital buffers in good times that can be drawn upon in periods of stress ("Reducing procyclicality and promoting countercyclical buffers").
Fifth, the Committee is introducing a global minimum liquidity standard for internationally active banks that includes a 30-day liquidity coverage ratio requirement underpinned by a longer-term structural liquidity ratio.
Answer: Yes these are proposed norms for BASEL-III to act as a guidelines for banking sector globally.
Great answers Sourabh & Harsh.
