For ongoing maintenance of regulatory capital, which of the following risks were covered by Pillar-1 Minimum Capital Requirement?
A. Credit Risk
B. Financial risk
C. Operation Risk
D. Market Risk
E. Reputational Risk
Choose the correct answer from the options given below:
Codes

Correct option is D

Pillar 1 of the Basel Accords (Basel II and Basel III) sets out the minimum capital requirements for banks to cover various types of risks. These include:
· Credit Risk (A): The risk of loss due to a borrower’s failure to repay a loan or meet contractual obligations.
· Operational Risk (C): The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.
· Market Risk (D): The risk of losses in on- and off-balance-sheet positions arising from movements in market prices.
Pillar 1 does not specifically cover Financial Risk (B) as a separate category, nor does it cover Reputational Risk (E). Financial risk is a broad category that can encompass various types of risks, including credit and market risks, but it is not explicitly mentioned as a standalone risk in Pillar 1. Reputational risk is generally addressed under Pillar 2 (Supervisory Review Process) and Pillar 3 (Market Discipline) rather than Pillar 1.
Therefore, the correct answer is (d) A, C and D only.