Abstract. The financial crisis has demonstrated that self-regulation is not sufficient to markets and financial institutions with systemic importance.

Permissive regulatory policies, allowing the development speed of global banking financial system, have played an important role in emphasizing the upward slope of the financial crisis.

The new regulations known as Basel III framework aimed the strengthening of prudential capital and liquidity of financial institutions and create a stronger banking and financial system more resilient to shocks.

Basel III is trying to eliminate the shortcomings of Basel II, by more extensive rules on integrated risk management in banking and financial environment.

Keywords: liquidity; capital; systemic risk; financial stability; prudence; banking; crisis.