Credit risk in banks refers to the potential loss arising from borrowers
failing to repay their loans or meet their financial obligations. It encompasses factors such as borrower creditworthiness, economic conditions, and market fluctuations, posing a significant challenge
to a bank's stability and profitability. Banks employ various risk management strategies, including rigorous assessment processes, diversification of portfolios, and setting aside reserves to mitigate
the impact of credit risk.
Credit Risk & its Causes link arrow_drop_down
