New study reveals hidden risks in banking industry, impacting global economy.
The article discusses different types of risks in banking and how they can be categorized as known, unknown, or unknowable. Market risk, credit risk, asset/liability risk, operational risk, and business risk are the main types of risks in banking. The study shows that credit risk contributes the most to total bank risk, followed by structural interest rate risk and non-financial risks. Large banks tend to have fewer extreme negative outcomes.