Importance of Interest Rate Risk and Credit Risk for Banks

Introduction

The main purpose of this paper, is to discuss the importance of interest rate risk and credit risks for banks and determine the measures which the bank can adopt to control these risks. Any commercial enterprise in its activity constantly faces with various risks, i.e., threats of financial loss under the influence of internal and external factors. Among the most significant financial risks for banks to allocate credit, interest rate, market risk, currency risk and liquidity risk. Currently, the banking regulatory and commercial banks in countries with developed financial systems consider interest ...