MANAGEMENT

Detailed explanation-1: -Basel I: the Basel Capital Accord Backed by the G10 Governors, Committee members resolved to halt the erosion of capital standards in their banking systems and to work towards greater convergence in the measurement of capital adequacy.

Detailed explanation-2: -The Basel Accords were formed with the goal of creating an international regulatory framework for managing credit risk and market risk. Their key function is to ensure that banks hold enough cash reserves to meet their financial obligations and survive in financial and economic distress.

Detailed explanation-3: -The Basel accord included three pillars on which the stability of the global banking industry was dependent. These three pillars are capital controls, supervisory review and market discipline.

Detailed explanation-4: -The Basel I accord was originally organized by central bankers from the G10 countries, who were at that time working toward building new international financial structures to replace the recently collapsed Bretton Woods system.