Question: Banks are subject to minimum capital requiremets based on what banking regulation recommendations issued by the Basel COmmittee on Banking Supervision? 
Context: A bank is a financial institution that accepts deposits from the public and creates credit.  Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.  Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities.  In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords. Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk.  It was agreed upon by the members of the Basel Committee on Banking Supervision in 2010–11, and was scheduled to be introduced from 2013 until 2015; however, changes from 1 April 2013 extended implementation until 31 March 2018 and again extended to 31 March 2019.  The third installment of the Basel Accords ("see Basel I, Basel II") was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08.  Basel III is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. Tier 2 capital, or supplementary capital, includes a number of important and legitimate constituents of a bank's capital base.  These forms of banking capital were largely standardized in the Basel I accord, issued by the Basel Committee on Banking Supervision and left untouched by the Basel II accord.  National regulators of most countries around the world have implemented these standards in local legislation.  In the calculation of regulatory capital, Tier 2 is limited to 100% of Tier 1 capital. Basel I is the round of deliberations by central bankers from around the world, and in 1988, the Basel Committee on Banking Supervision (BCBS) in Basel, Switzerland, published a set of minimum capital requirements for banks.  This is also known as the 1988 Basel Accord, and was enforced by law in the Group of Ten (G-10) countries in 1992.  A new set of rules known as Basel II was later developed with the intent to supersede the Basel I accords.  However they were criticized by some for allowing banks to take on additional types of risk, which was considered part of the cause of the US subprime financial crisis that started in 2008.  In fact, bank regulators in the United States took the position of requiring a bank to follow the set of rules (Basel I or Basel II) giving the more conservative approach for the bank.  Because of this it was anticipated that only the few very largest US banks would operate under the Basel II rules, the others being regulated under the Basel I framework.  Basel III was developed in response to the financial crisis; it does not supersede either Basel I or II , but focuses on different issues primarily related to the risk of a bank run. During the financial crisis of 2007–2008, several banks, including the UK's Northern Rock and the U.S. investment banks Bear Stearns and Lehman Brothers, suffered a liquidity crisis, due to their over-reliance on short-term wholesale funding from the interbank lending market.  As a result, the G20 launched an overhaul of banking regulation known as Basel III.  In addition to changes in capital requirements, Basel III also contains two entirely new liquidity requirements: the net stable funding ratio (NSFR) and the liquidity coverage ratio (LCR).  On October 31, 2014, the Basel Committee on Banking Supervision issued its final Net Stable Funding Ratio (it was initially proposed in 2010 and re-proposed in January 2014). Risk-weighted asset (also referred to as RWA) is a bank's assets or off-balance-sheet exposures, weighted according to risk.  This sort of asset calculation is used in determining the capital requirement or Capital Adequacy Ratio (CAR) for a financial institution.  In the Basel I accord published by the Basel Committee on Banking Supervision, the Committee explains why using a risk-weight approach is the preferred methodology which banks should adopt for capital calculation. The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1974.  It provides a forum for regular cooperation on banking supervisory matters.  Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.  The Committee frames guidelines and standards in different areas – some of the better known among them are the international standards on capital adequacy, the Core Principles for Effective Banking Supervision and the Concordat on cross-border banking supervision.  The Committee's Secretariat is located at the Bank for International Settlements (BIS) in Basel, Switzerland.  However, the BIS and the Basel Committee remain two distinct entities. The Basel Accords (see alternative spellings below) refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee on Banking Supervision (BCBS). Minimum capital is a concept used in corporate law and banking regulation to stipulate what assets the organisation must hold as a minimum requirement.  The purpose of minimum capital in corporate law is to ensure that in the event of insolvency or financial instability, the corporation has a sufficient asset base to satisfy the claims of creditors. Basel II is the second of the Basel Accords, (now extended and partially superseded by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.
Answer: Basel Accords