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Basel III/IV Framework

Calculate Basel III and Basel IV capital adequacy, liquidity, and leverage ratios.

2|1|Updated Mar 14, 2026
Search Tags:#compliance#basel iii#capital adequacy#banking regulation#basel iv#risk-weighted assets#liquidity ratios
One-click install
npx skills add https://github.com/brainbytes-dev/everything-claude-finance --skill basel-iii-iv-framework
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: Basel III/IV Framework
Source: https://github.com/brainbytes-dev/everything-claude-finance/tree/main/skills/compliance/basel-iii
Command: npx skills add https://github.com/brainbytes-dev/everything-claude-finance --skill basel-iii-iv-framework

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes references (resource) components.

What problem does it solve?

This Skill helps financial institutions understand and implement the complex requirements of the Basel III and Basel IV regulatory frameworks, ensuring compliance with capital adequacy, liquidity, and leverage ratios.

Core Features & Use Cases

  • Capital Adequacy: Calculate Common Equity Tier 1 (CET1), Additional Tier 1 (AT1), and Tier 2 capital ratios.
  • Risk-Weighted Assets (RWA): Compute RWA for credit, market (FRTB), and operational risk.
  • Liquidity Ratios: Analyze Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
  • Leverage Ratio: Assess compliance with the non-risk-based leverage ratio.
  • Basel IV Output Floor: Understand and calculate the impact of the output floor.
  • Use Case: A bank needs to determine its total capital requirements for the upcoming quarter based on its current asset portfolio and regulatory guidelines.

Quick Start

Calculate the Basel III capital adequacy ratios for a given set of assets and liabilities.

Frequently Asked Questions about Basel III/IV Framework

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate capital adequacy ratios for Basel III compliance?▼

Liquidity Coverage Ratio (LCR) requires calculating high-quality liquid assets divided by total net cash outflows over a 30-day stress period, ensuring sufficient liquidity during Basel III compliance.

What is the difference between Basel III and Basel IV output floor requirements?▼

Liquidity Coverage Ratio (LCR) ensures banks hold sufficient high-quality liquid assets to survive a 30-day stress scenario, while Net Stable Funding Ratio (NSFR) promotes resilience over a one-year horizon.

How do I compute risk-weighted assets for credit, market, and operational risk?▼

Risk-weighted assets are calculated by applying specific risk weights to credit exposures, using the Fundamental Review of the Trading Book (FRTB) framework for market risk, and standardized approaches for operational risk.

Can I use this framework for non-risk-based leverage ratio assessment?▼

Yes, you can assess the non-risk-based leverage ratio by dividing Tier 1 capital by total leverage exposure, providing a backstop to risk-weighted capital requirements and limiting excessive balance sheet leverage.

How does the Liquidity Coverage Ratio (LCR) work under Basel III?▼

The Basel IV output floor limits risk-weighted asset reductions from internal models by anchoring them to standardized approach outputs, preventing banks from underestimating capital requirements through model optimization.

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