What are the market risks of commercial banks?

1. Credit risk: the risk that the borrower fails to repay the principal and interest on schedule according to the terms of the contract. This is one of the most basic risks faced by banks.

2. Country risk: Banks are increasingly involved in international business, while other countries affect borrowers' solvency due to political, economic and natural reasons, especially government loans. A special case of national risk, transfer risk.

3. Market risk: the price change of financial assets, especially the market risk of off-balance sheet business is very high.

4. Interest rate risk: the fluctuation of deposit and loan interest rates leads to the change of interest spread. Because banks have a lot of short-term loans, and long-term deposits, lump-sum deposits and withdrawals are all fixed interest rates.

5. Liquidity risk: there are not enough liquid assets to meet the customer's withdrawal requirements or reasonable loan requirements.

Extended data:

The operational risk management of banks involves not only the internal procedures and processes of banks, but also the organizational structure, policies and operational risk management processes of banks.

For institutions, there should be appropriate policies to deal with operational risks. First of all, we must determine these policies and inform the employees of the whole bank.

In order to have a clear governance structure, we must know who to report to under what circumstances. In a typical bank case, there should be a separate credit risk management organization, and different business departments should be responsible for the daily business management, that is, there are two reporting mechanisms to report the daily operation to the managers of such business departments.