667 B
667 B
Bank Risk Management
Definition
The practices and systems by which banks identify, assess, and control various risks including credit risk, liquidity risk, and operational risk. Effective risk management is essential for banking stability and economic development.
Source Chapter
Book II, Chapter 2
Context
Smith examines how banks must manage various risks to maintain stability and serve economic needs. He analyses the different types of risk and the methods banks use to control them.
Economic Domain
Regulation