The Basel III is a global framework that is intended at setting international standards for banks' capital adequacy, stress level and liquidity. These rules are developed by the Basel committee on Banking Supervision in response to the financial crisis of 2007-09. In order to increase the banking industry's capacity to absorb shocks from financial stress, the Basel Committee on Banking Supervision's (BCBS) came up with Basel reforms in 2010. These reforms lay out norms on capital and liquidity that banks need to follow and are aimed at helping financial institutions to keep a check on their financial health.