Abstract
Maintaining bank health is important, and international banking standards, and in particular the Basel Accords, set crucial standards that it must be kept to. While these rule increase capital adequacy, risk management, and liquidity control, the effect of the regulation in terms of impact on the bank lending capacity and economic inclusivity is largely debated. There is a knowledge gap on how the Basel standards influence the long term effects, and if they are fit for the digital finance innovations. "Focusing on the bank's compliance in regulation, performance on finance, and techniques of risk mitigation through different environments in banking; this study uses a qualitative approach." The analysis finds that Basel III helped strengthen financial resilience by lowering the amount of non-performing loans and improving liquidity coverage, however, compliance costs are unequally affected by the size of the bank and the level of development of the country. The study also reveals that there is a need to balance the financial stability with flexibility in the regulatory formats which can allow the paradigms of banking to evolve and lead to innovation but should not hamper the systemic security at the same time. They support policy discussions on sustainable and inclusive financial regulation