Question: what are the main risks faced by banks?
Answer: Credit Risks. Credit risk is the risk that arises from the possibility of non-payment of loans by the borrowers. ...  Market Risks. Apart from making loans, banks also hold a significant portion of securities. ...  Operational Risks. ...  Moral Hazard. ...  Liquidity Risk. ...  Business Risk. ...  Reputational Risk. ...  Systemic Risk.