Abstract:
This paper measure the relations of Basel-III and bank stability and the factors of Basel-III, capital asset ratio, leverage ratio and liquidity ratio with their significant relationship with bank stability. The sample size of the study is 31 banks and data range of the study is 2011-2020 and it is the annual statements of each bank. The data has been collected from b-recorder and financial statements of each bank and it measures the significant positive relationship with capital asset ratio, leverage ratio and liquidity ratio with their significant relationship with bank stability. By using correlation, regression and common, fixed, and random effects it is concluded that it has significant and positive relationship with banks stability. The study measures the effectiveness of Basel-III with banks stability of the measurement model. The study has used econometric model.