The concept of banking risks and their causes

Bank as a commercial organization is committed to making a profit, which ensures the stability and reliability of its operation, and can be used to expand its activities. But the focus on profitability is always associated with the various types of risks, which in the absence of their limitations can result in losses. Therefore, any bank in determining its strategy of forming a system of measures, which on the one hand, the aim of making a profit, and, on the other hand, take into account the possibility of loss prevention in the implementation of banking.
The successful solution of the problems the optimization of the "profitability - risk" in the implementation of the bank's credit operations is largely determined by the use of effective credit mechanism.