Basel III rules were introduced after the 2008 global financial crises that demonstrated that Basel II is too flexible and cannot secure the global economy and financial sector from instability. The renovated requirements are tighter and it is believed that they will be more effective. It is imperative to note that Basel III is made up of two groups of requirements – capital requirements and funding and liquidity requirements (Breeschoten 2015). The first group centers on liquidity and funding of banks determining that they should have liquid assets of high quality that would help to withstand thirty days-long stressful situations in the financial sector. As for the capital requirements, this group focuses on guaranteeing the quality of capital, its conservation, and the establishment of countercyclical buffer necessary for minimizing financial risks (Basel Committee on Banking Supervision Reforms n.d.). In general, Basel III recommended to increase the quantity of capital and improve its quality so that in case of economic turbulence there is a reserve for avoiding catastrophe. The introduction of Basel III capital requirements had a robust influence on both real economy and global financial sector. First of all, increased requirements are helpful for making banks more stable. It means that they obtain better ability to absorb losses. In case of unexpected economic developments, this capacity is useful for preserving instability within one financial institution and avoiding spillover affect that led to the 2008 global financial crisis. Generally speaking, the implementation of Basel III capital requirements leads to consolidation of the financial sector and, as a result, economy as the whole. Moreover, because banks are required to increase the volume of liquid assets, it eliminates the necessity of raising additional capital over years. It as well means that banks become more powerful and their activities are consolidated. In addition, these requirements minimize the risks of undesirable bubbles in the financial sector that might influence welfare of states and the global economy (International Monetary Fund 2013). It should be noted that even though it would be difficult for the banks to follow these requirements and upgrade their capital funds, the weakest banks would cease operating on the market. It means that only stable and powerful institutions will remain functioning in the financial sector that would guarantee its stability and security (KPMG 2011). As for the influence of Basel III capital requirement on the real economy, it should be viewed from the perspective of banks operation. Because banks are forced to increase the volume of liquid assets, the resources for providing the real economy with loans would drain (Ennew & Waite 2013). It means that Basel III capital requirements will be connected with the decrease of manufacturing rates and gross domestic product in the short run. Nevertheless, the negative influence of new requirements will disappear over time with the establishment of new equity rates and accumulating enough funds for financing the needs of the real economy (Wandhofer 2014). To sum up, the impact of Basel III capital requirements would be positive