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Basel III
Basel III
- A worldwide standard that enhances international banking regulation structure, greatly improving risk management and promoting transparency
- Gold moving from asset tier 3 to tier 1, which allows physical gold in bars form to be accounted for at 100% of the amount for booking purposes
- Due to the 2007-2009 financial meltdown, Basel III was introduced
- International regulatory framework for banks
- Deadline on June 28, 2021
- The requirement that banks maintain a minimum capital value of 7% in reserve
- Require banks to hold unencumbered physical gold valued at 100%
- This will make banks less profitable as they will no longer be able to make money about the interest rate