Abstract: In response to the 2008 financial crisis, international banking regulators have been imposing multiple capital, leverage and liquidity requirements on the banking industry which are significantly stricter than those under the pre-crisis regulatory framework, along with the new Basel III accord. The new standards aim to strengthen supervision and risk management in the banking sector. These standards which require banks to increase equity capital and their liquid reserves held as a buffer as well as to improve their capital quality would lead to substantial changes in their profitability, risk appetite and strategic planningof banks. This study comprehensively reviews the recently developed capital regulations for financial institutions and presents their potential impacts on individual firms and the overall banking sector.