Bank's Currency Risk Management Policy Positively Impacts Stability and Efficiency.
Banks face risks when dealing with different currencies. This study looked at how one bank manages these risks. They found that the bank mostly holds loans and other assets in foreign currencies, with US dollars and Euros being the most common. The bank's currency assets have been growing, but they rely heavily on just a few currencies, which could be risky. Overall, the bank's strategy for managing currency risks seems to be working well, as they have reserves in place and follow regulations to protect against losses.