Abstract
Banking, though integral part of an economy, is the most volatile business because of the commodity it deals in changes value with variation in its circulation. Money value in the market, at times, is determined by its quantity, but the number of transactions carried out with money is of equal importance. Rarely, it happens that the quantity alone affects its purchasing power. The value of money is thus a function of both the supply and demand which together determines the trend of prices in the market. The supply of money results from the credit decision of banking industry as a whole which generally takes into account the market scenario depicting future economic activities and safety of banks funds. No doubt the scope of market mostly depends upon the availability of finances yet the market stability ultimately helps in credit expansion by promoting optimism and growth opportunities in the economy. This paper will discuss the various elements of risks which render the money market more volatile and will suggest preventive measure to minimize the chances of Loss so that the flow of credit may continue unhindered.
Highlights
Risk is a concept widely used in matters associated with the assets and liability management
According to Khan Risk is a probable loss in income or assets
The banking business largely depends upon the volume of deposits secured and any such event which may result in the loss of deposits, may it be with drawl by the customers due to declining trust or quality of service may attract initiate attention of the managers
Summary
Risk is a concept widely used in matters associated with the assets and liability management. The term denotes a phenomenon where in danger of loss in the value of assets is apprehended or there is an apprehension that a substantial addition to the liability may arise due to the happening of a presumed event It is potential danger of loss associated with the happening of particular event. The banking business largely depends upon the volume of deposits secured and any such event which may result in the loss of deposits, may it be with drawl by the customers due to declining trust or quality of service may attract initiate attention of the managers Under such circumstances the managers are always anxious to retain the exiting portfolio and make all out efforts to increase the deposits. The risk management, warrants in time identification of various types of the risk involved in the transaction of the business and take preventive measures to mitigate the loss
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
