Importance of Credit Portfolio Risk in Commercial Banks and Necessity of its Management

Abstract

This article discusses the importance of managing credit portfolio risks in commercial banks. It highlights the significance of effective risk management strategies to mitigate potential losses and ensure the stability of the banking sector. The article likely explores various risk factors inherent in credit portfolios, such as credit default, market volatility, and economic fluctuations. It may also delve into the role of risk management techniques and tools in assessing, monitoring, and controlling these risks. Overall, the article emphasizes the necessity for banks to prioritize risk management practices to safeguard their financial health and sustain long-term growth.