The first objective is addressed by a series of general provisions requiring States to respect the fundamental principles of environmentally sound waste management (Article 4). A number of prohibitions aim to achieve the second objective: hazardous wastes may not be exported to Antarctica, to a State which is not a party to the Basel Convention or to a Contracting Party which has prohibited the import of hazardous wastes (Article 4). However, Parties may conclude bilateral or multilateral agreements on hazardous waste management with other Contracting Parties or with non-Contracting Parties, provided that such agreements are not “less environmentally sound” than the Basel Convention (Article 11). In all cases where transboundary movements are not in principle prohibited, they may take place only if they constitute an environmentally sound solution, if the principles of sound management and non-discrimination are respected and if they are carried out in accordance with the regulatory system of the Convention. Basel III is a continuation of the three pillars as well as additional requirements and protection measures. For example, Basel III requires banks to have a minimum level of registered capital and a minimum liquidity ratio. Basel III also includes additional requirements for what the agreement calls “systemically important banks” or financial institutions considered “too big to fail.” The Basel Accords are an agreement among the member countries of the Basel Committee on the need and method of strengthening regulation in order to achieve and maintain a sound international banking system. The agreements aim to respond to the desire of industrialized countries for a common framework for the supervision of internationally active banks. Incidentally, member states and several non-members will want to implement the agreements, even though the Basel Committee has no legal power to enforce its decisions. Particular characteristics in various countries shape the Committee`s decision not to enact laws to enforce the Basel Accords. The decision to legislate on certain aspects of the agreements is more at the discretion of the States members of the Committee.

Following the collapse of Lehman Brothers in 2008 and the ensuing financial crisis, BCBS decided to update and strengthen the agreements. The BCBS cited poor governance and risk management, inadequate incentive structures and an over-indebted banking sector as reasons for the collapse. In November 2010, an agreement was reached on the overall design of the capital and liquidity reform package. This agreement is now known as Basel III. Why and how is the banking sector the most regulated activity and what are the effects on the financial system? In September 2010, the Group of Governors and Chief Supervisors (GHOS) announced higher minimum global capital requirements for commercial banks, preceded by an agreement reached in July on the overall design of the capital and liquidity reform package, now known as “Basel III”. In November 2010, the new capital and liquidity standards were approved at the G20 summit in Seoul and approved at the Basel Committee meeting in December 2010. .