Basel III will triple the quantum of capital banks will need to maintain. But whether it will risk-proof the banking sector is doubtful. To be sure, Basel III is an improvement over Basel II, just as Basel II was an improvement over Basel I's rough and ready thumb-rule of 8% capital adequacy. But the problem, as the crisis has shown us, was not with the rules per se. The cut-throat competition among banks means it will always be 'profitable' to game the system. In such a scenario, the best of rules are of no use unless such rule-based regulation is supplemented by pro-active and competent supervision.