Basel III is a global regulatory framework established to strengthen the banking sector's resilience following the 2008 financial crisis. It was developed by the Basel Committee on Banking Supervision and aims to improve the quality and quantity of capital banks must hold, ensuring they can absorb financial shocks and reduce the risk of bank failures. The framework introduces stricter capital requirements, including a higher minimum common equity ratio, and emphasizes the importance of liquidity. Additionally, it includes measures to monitor and manage systemic risks, promoting a more stable financial environment and protecting the economy from future crises.