Basel III has a number of objectives. Capital or equity acts as a buffer to absorb bank losses. It's not only the amount of that capital, but the quality of the capital that's important. Enhanced risk capture refers to the fact that not all risks have been adequately captured in previous accords. This includes counterparty risks on derivative exposures for example. Banks need leverage to generate an adequate return for shareholders, but too much leverage poses a threat to a bank's ability to withstand economic shocks and stresses. As a result of the 2008 financial crisis, there are two important metrics that have been introduced to improve liquidity, the shorter term liquidity coverage ratio and the longer term net stable funding ratio. Limiting procyclicality refers to building up capital buffers when times are good, so that they are available to be drawn down in tougher times. A buffer refers to additional capital a bank needs to hold above the minimum. A procyclicality buffer means banks must hold more capital when systemic risks are increasing.