ØBasel I (1988 Basel Accord),
was primarily concerned with providing capital to absorb losses on account
of credit risk. Capital charge for credit risk introduced since
1992-93. Market
risks introduced in 1996.
ØPurpose:
ØStrengthen the capital base of banks
ØLink capital base with risks in on-balance
sheet and off-balance sheet items
ØAssets of banks were classified and grouped in five
categories.