Basel I refers to the capital requirements for banks adopted by the Basel Committee on Banking Supervision in 1988, also known as the International Convergence of Capital Measurement and Capital Standards.
The Basel I rules stipulated that banks must have a capital ratio of at least 8% of their risk-weighted assets. This involved dividing banks' assets into different categories, each of which was given a specific risk weight.
Basel I was the first internationally recognised set of rules for banks' capital requirements and contributed to the creation of a common framework for the regulation of banks. It was supplemented and further developed in the following years by Basel II and Basel III.
Overall, the Basel framework has had a significant impact on the regulation and supervision of the banking sector worldwide and contributes to strengthening the stability of the financial system.
