Most obviously, Basel III addresses the issue of inadequate capital. Basel III liquidity requirements can also reduce banks’ interconnectedness by restricting the use of short-term market funding. They will also be helpful in reducing excessive leverage and building liquidity buffers. Basel III also reduces complexity and interconnectedness by blocking opportunities for regulatory arbitrage which under Basel II was possible via complex securitisation structures.
1  “Traditional” digital innovation has been doing a lot for financial markets infrastructure  I would argue that this is probably the sector least affected, thus far, by the latest technological developments that inspire today’s seminar. The adoption of digital technologies for financial market infrastructures started with the dematerialization of securities in the sixties.