The main goal for the Basel Committee on Banking Supervision is to improve understanding of key supervisory issues to set a healthy banking supervision worldwide. Its main objective is to develop regulatory frameworks in order to improve banking systems. Currently, Basel III has been developed to meet the deficiencies in financial regulations exposed during the financial crisis of 2007-2008. Basel III is a global voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. It is assumed to strengthen bank capital requirements by decreasing bank leverage and increasing bank liquidity. The objective of implementing Basel III is to make the banking sector more robust so that it can absorb shocks arising from financial and economic stress, improve risk management and governance, and strengthen banks' transparency and disclosures.

The R community has developed a library, SACCR, keeping in mind the regulations of Basel III. This library has many methods which are based upon the standardized norms of Basel III. It has implemented all the examples appearing in the regulatory framework. For example, it computes exposure at default according to Basel norms.

It uses the function CalcEAD(RC,PFE) to calculate the exposure of default.

Here, RC is replacement cost and PFE is projected future exposure.

So, if the RC component is 50 and PFE is 400 then executing the following code finds exposure at default:

> CalcEAD(50,400) 

It generates the output 630.

Similarly, there are other functions in this library on the basis of implementation of Basel III.