Basel III is a global regulatory framework that aims to strengthen bank capital requirements and introduce new regulatory requirements on bank liquidity and leverage. It was a response to the deficiencies in financial regulation revealed by the financial crisis of 2008. Key aspects of Basel III include stricter capital requirements, new liquidity standards including a liquidity coverage ratio and net stable funding ratio, and a non-risk-based leverage ratio to constrain balance sheet growth. The goals of Basel III are to improve the banking sector's ability to absorb shocks arising from financial and economic stress and reduce the risk of spillover from the financial sector to the real economy.