The Basel Accords are a series of international banking regulations created by the Basel Committee on Banking Supervision, which is part of the Bank for International Settlements. The accords are designed to ensure financial stability by setting standards for capital requirements, risk management, and liquidity. The most recent set of Basel Accords is known as Basel III, which was published in 2011. The Basel Accords have an impact on commercial banks by setting standards for how much capital they must hold in order to meet certain risk thresholds including the adoption of [[CECL]] (Current Expected Credit Loss) These standards are designed to reduce systemic risk, which occurs when the failure of one institution has a negative impact on the entire financial system. By setting capitol requirements for capital adequacy and liquidity, the accords help to ensure that banks have enough resources to absorb losses due to unexpected events or market downturns. The regulations also encourage banks to manage risks effectively and create robust internal controls. In addition, they promote transparency with regards to capital adequacy and liquidity ratios, allowing investors and regulators alike to better understand a bank’s financial position.