What are the main aspects of bank risks?

(1) Credit risk: the risk that the counterparty cannot perform the contract;

(2) Market risk: the risk that the bank's on-balance sheet and off-balance sheet positions suffer losses due to changes in market prices;

(3) Interest rate risk: refers to the risk faced by the financial position of the bank when the interest rate fluctuates adversely.

(4) Liquidity risk: refers to the situation that a bank cannot provide financing for the reduction of liabilities or the increase of assets, that is, when the bank is short of liquidity, it cannot quickly increase liabilities or realize assets at a reasonable cost to obtain sufficient funds, thus affecting its profitability;

(5) Operational risk: mainly lies in the failure of internal control and corporate governance mechanism;

(6) Legal risk: including the risk that the value of assets decreases or liabilities increase due to imperfect and incorrect legal opinions and documents;

(7) Reputation risk: This risk stems from operational errors, violation of relevant laws and regulations and other issues.