The banking sector faces several risks like any business. But, provided the sector’s systemic importance, it is crucial that bank dangers are correctly grasped and addressed. Since banking institutions are custodians of general general public money, governments also provide a stake in order to keep bank dangers in balance.
Exactly what are bank dangers?
Bank dangers could be broadly divided in to two groups. One is macro degree, or systemic, risk, which takes place when the complete bank system faces difficulty.