The Basel Accords are a series of three sequential banking regulation agreements (Basel I, II, and III) set by the Basel Committee on Bank Supervision (BCBS). The BCBS is a group of 45 representatives from major global financial centers. The Committee provides recommendations on banking and financial regulations, specifically, concerning capital risk, market risk, and operational risk. The accords ensure that financial institutions have enough capital on account to absorb unexpected losses. The liquidity coverage ratio (LCR) is a chief takeaway from the Basel Accord.