Regulation (EU) 2024/1623, known as CRR III, is the EU’s flagship legislative update implementing the final Basel III standards into Union law. Adopted on 31 May 2024 and largely applicable from 1 January 2025, it refines the prudential framework for banks by enhancing the risk sensitivity of capital requirements for credit risk, operational risk, market risk, and credit valuation adjustment risk, while introducing a binding output floor to limit the capital benefits of internal models. Key changes include a more granular standardised approach for credit risk, a new simplified standardised methodology for operational risk, updated rules for real estate collateral and off-balance-sheet items, and transitional arrangements for crypto-asset exposures. Together with the accompanying CRD VI directive, CRR III strengthens financial stability and reduces variability in risk-weighted assets while aiming to preserve the EU banking sector’s ability to support the economy.