Well this is a very good subject to tackle especially when we are conditioned to think that banks are the safest place to put our hard earned money.
The following are the risks I can think of:
Credit Risk - I believe this is one of the greatest risks banks are facing. The risk of not getting back the amount they have lent to their borrowers. Apart from that, there is always a risk of delayed payment. So instead of rolling the money for several investments or lending it to other people, the money will become stagnant.
Investment Risk - Banks use our money for their very own investments such as securities, stocks, or even in forex. I presume this is the reason why we are required to have a maintaining balance in our accounts to provide for their investments. The idea of banks investing is never a wrong way, but if the investment fails, then they are to face the risk of having accountable financial losses.
Security Risk - Phishing activities happening in both atms and online could put a negative effect on the bank's security, thus could lead to trust and reputation issues from their cutomers.
Well this is a very good subject to tackle especially when we are conditioned to think that banks are the safest place to put our hard earned money.
The following are the risks I can think of:
Credit Risk - I believe this is one of the greatest risks banks are facing. The risk of not getting back the amount they have lent to their borrowers. Apart from that, there is always a risk of delayed payment. So instead of rolling the money for several investments or lending it to other people, the money will become stagnant.
Investment Risk - Banks use our money for their very own investments such as securities, stocks, or even in forex. I presume this is the reason why we are required to have a maintaining balance in our accounts to provide for their investments. The idea of banks investing is never a wrong way, but if the investment fails, then they are to face the risk of having accountable financial losses.
Security Risk - Phishing activities happening in both atms and online could put a negative effect on the bank's security, thus could lead to trust and reputation issues from their cutomers.