The banking sector plays a critical role in the global economy, facilitating financial flows that drive economic growth and development. However, the activities of banks can have significant environmental and social impacts, both positive and negative. From financing infrastructure projects to providing loans for industrial activities, banks are inherently linked to the sustainability of our … Read more
Market risk is an inherent part of the banking industry, stemming from fluctuations in market variables such as interest rates, exchange rates, equity prices, and commodity prices. These fluctuations can impact a bank’s earnings, capital, and overall financial stability. Effective market risk management is, therefore, crucial for banks to survive and thrive in a dynamic … Read more
The global financial system is undergoing a significant transformation, driven by the increasing awareness and urgency surrounding climate change. As the planet warms and extreme weather events become more frequent and intense, banks are finding themselves at the forefront of this shift. Climate change poses a complex and multifaceted risk, impacting banks’ operations, portfolios, and … Read more
Introduction Banks are at the heart of the financial system, playing a crucial role in channeling funds from savers to borrowers. Their profitability, however, is significantly influenced by various risks, with interest rate risk being one of the most prominent. Interest rate risk arises from the potential for changes in interest rates to negatively impact … Read more
Liquidity risk is a critical concern for banks, representing the potential inability to meet its obligations as they come due. Banks, as financial intermediaries, play a vital role in the economy by channeling funds from depositors and investors to borrowers. This process, however, inherently creates liquidity risk, as banks must manage the timing and amount … Read more