Basel III is a list of comprehensive reforms whose goal is to strengthen the regulation, supervision, and risk management of the banking sector. Basel III framework is built upon the Basel I and Basel II framework. Pillars of Basel III accord:Pillar 1 - Enhanced Minimum capital and liquidity requirements. Pillar 2 - Enhanced Supervisory review process of firm-wide risk management and capital planning. Pillar 3 - Enhanced Risk disclosure and market discipline. Therefore, the three mutually reinforcing pillars of Basel-III capital regulations are based upon Minimum capital standards, Supervisory review of capital adequacy, and Market discipline. Regulatory elements of Basel III:Higher Tier 1 and Tier 2 capital requirements - this serves as a buffer to absorb shocks during a financial crisis. Capital conservation buffer - this is mandatory additional capital that is required to behold over and above its minimum capital requirement. Counter critical measures - there are regulations to deal with cyclical changes in the balance sheet of banks. Liquidity standards - Liquidity coverage ratio and Net stable funding ratio are the two liquidity standard ratio mandated. Capital leverage ratio - this is used to determine the capital adequacy of the banks and also puts a constraint on how banks may leverage their capital.