Market Risk in Banking

Market Risk in Banking When compared to funds the risk that banks have are slightly different. Namely : –      Their loan book (Assets) may be quite illiquid –      Funding sources (call deposits) can be outside the banks control Identification We talked...

Introduction to Market Risk

Market risk is the change in the value of financial instruments from fluctuations in the market place where they are traded. This is fairly straight forward when dealing with liquid markets , but can be more difficult to quantify in illiquid markets. This is...