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How to implement banking supervision is allocated nine categories of risk, namely credit risk, liquidity risk, interest rate risk, market risk, currency risk, operational and technological risk, reputation risk, legal risk and strategic risk. These categories are not mutually exclusive; any product or service may expose the bank to several risks. Credit risk - this is an existing or potential risk to earnings and capital, which arises from the inability of the party who has undertaken to fulfill the terms of any financial agreement with the bank (his unit), or otherwise perform its obligations' liabilities. Credit risk exists in all activities where the outcome depends on the counterparty, the issuer or borrower. It occurs every time the bank provides funds, accepts the obligation to provide them, invest or otherwise runs the risk of them under the terms of the actual or prospective transaction, regardless of where the transaction is reflected - in the balance sheet or off balance sheet. Topic: Risks in Banking | Tags: Credit risk