Managing Market Risk in Banks
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چکیده
Analysis of banks’ r isk exposures is important both for management within banks and for bank supervisors. Two major sources of risk for banks are credit risk (the risk that loans will not be repaid) and market risk (the risk of losses arising from adverse movements in market prices). This article focuses on the analysis and management of market risk, an area that has received increasing attention from managers and supervisors in recent years as banks’ financial trading activities have grown. The article is based on a series of seminars held in the first half of 1996 by the Bank Supervision Department with participants from the banking and finance industry.
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