answersLogoWhite

0


Best Answer

The two main risks for banks are:

1. Liquidity Risk - The risk that all customers who have deposits with the bank want to withdraw their deposits at the same time. No bank on earth can survive such a calamity

2. Credit Risk - The risk that customers who borrowed money from the bank would default on the repayments and not pay the money they owe the bank.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the type of risk involved in banking industry?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What type of industry is SYLVA involved in?

SYLVA is involved in the data collection and management industry. This industry is regarded as extremely competitive and many people have made their fortunes in it.


What does an assistant manager's job involve?

That depends on the type of business/industry involved.


Who can invest in banking sector funds?

Usually there are no restrictions as to who can invest in a particular type of fund. If you are asking, who would want to invest in banking funds, the answer is: anyone who feels that the banking industry will continue to grow and generate profits for the investors can invest in them.


What is the actual meaning of insurance?

The term insurance means the transfer of risk from one person to another, usually a company specializing in the insurance industry. You can transfer any type of risk be it the risk of wrecking your automobile, the risk of dying, the risk of a storm damaging your home. The type of risk dealt with in insurance is always the risk of financial loss.


What type of banking do consumers most prefer?

Honest banking.


What is it called when you are sharing financial consequences associated with risk in the industry called?

Sharing financial consequences associated with risk in the industry is called risk sharing. It is a practice where multiple parties agree to distribute or transfer the potential financial losses or gains resulting from a specific risk. This can be done through various methods, such as insurance, partnerships, or contracts.


What risk is involved in surgery to correct carpal tunnel syndrome?

Recovery from this type of surgery is usually quick and without complications.


Which dominated the free banking era between 1837 and 1863?

During the free banking era in the United States, the industry was dominated by state chartered banks. This is a type of bank that is different from federal reserve banks because they are not insured by the FDIC, but by the state instead.


What type of industry is Exchange and Mart involved with?

Exchange and Mart is involved with the vehicle industry. They provide a way for individuals to buy and sell vehicles, new and used, and parts. The Exchange and Mart website can also be used to find local used car dealers.


What type of degree do you needto be a bank manger?

a wide range of degrees but particularly a degree in Banking, Finance, Risk management or Accountint. all of which are available in my country, Zimbabwe. for more infro: chengetayir@yahoo.com a wide range of degrees but particularly a degree in Banking, Finance, Risk management or Accountint. all of which are available in my country, Zimbabwe. for more infro: chengetayir@yahoo.com a wide range of degrees but particularly a degree in Banking, Finance, Risk management or Accountint. all of which are available in my country, Zimbabwe. for more infro: chengetayir@yahoo.com


Risk that affects a single company is called risk?

Risk that effects a single company is called unsystematic risk. This type of risk may be diversified away by incorporating non-correlating assets into a portfolio. Unsystematic risk differs from systemic risk, which are risks that effect all companies regardless of their industry or sector and cannot be diversified away.


What is preferred banking?

Preferred banking can refer to a type of banking that has benefits including special privileges. Many banks offer this to premium banking customers.