The overview of risks facing the International Banking System

Mike Adu-Gyamfi

Abstract


The paper identifies some of the key risks encountered by international banks in their operations, their causes and effects, and prescribe measures to mitigate them.  Key risks discussed in this paper include interest rate risk, credit risk, liquidity risk, market risk, operational risk and political risk.  The paper concludes that these risks are very critical in the operations of international banks and their impact can be very suicidal to the survival of any bank.  The paper therefore suggests the need for every international banks to formulate and implement effective risk management policies that can identify and examine various risk associated with their operations and put in place the appropriate mitigating measure.

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