Comprehensive and Detailed In-Depth Explanation:

The Basel I Accord, introduced in 1988 by the BCBS, focused primarily on credit risk, establishing a standardized framework for capital requirements to cover potential losses from borrowers’ defaults. It introduced risk-weighted assets (RWA) with specific weights (e.g., 0% for OECD government bonds, 100% for corporate loans) and required banks to hold a minimum capital ratio of 8% against credit risk exposures. Market risk was not addressed until the 1996 Amendment to Basel I, operational risk was introduced in Basel II (2004), and liquidity risk became a focus in Basel III (2010). Thus, Basel I’s original scope was limited to credit risk.