• Gaurav Saboo
• Dr. S. D SHARMA

Credit risk is the largest risk for banks. It occurs when borrowers or maybe counterparties fail to meet contractual obligations. A good example happens when borrowers default on a principal or maybe interest payment of a loan. Defaults are able to happen on mortgages, credit cards, and fixed income securities. Failure to fulfill obligational contracts also occurs in areas like derivatives and guarantees offered. Market risk is what goes on when there's a considerable change in the specific marketplace in which a business competes. Credit risk happens when companies give the customers of theirs a line of credit; additionally, a company's risk of lacking sufficient money to pay the bills of its. Market risk largely occurs out of a bank's pursuits in capital markets It's because of the unpredictability of credit spreads, interest rates, commodity prices, and equity markets. Banks are definitely more exposed whether they're highly involved in investing in capital markets or maybe trading & sales. Risk management is the identification, appraisal, and prioritization of risks followed by facilitated and economical utilization of resources to limit, screen and control the probability and effect of unfortunate events. Deposit money banks expect different sorts of risks during the time spent offering financial types of assistance as loaning is the center business action of banks.

Market Risk, Financial Performance, Banks, Credit risk, Business action

"IMPACT OF MARKET RISK ON THE FINANCIAL PERFORMANCE OF BANKS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.617-628, April-2019, Available :http://www.jetir.org/papers/JETIR1904T82.pdf

"IMPACT OF MARKET RISK ON THE FINANCIAL PERFORMANCE OF BANKS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp617-628, April-2019, Available at : http://www.jetir.org/papers/JETIR1904T82.pdf