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Risks with Banks

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Submitted By circlets
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Bank Risk Types and Trends
Marie Tomlinson
Rasmussen College

Author Note This paper is being submitted on May 19, 2016, for Paula Bolf’s ESUM16-6WS2-ONP-RMI4020-02 Risk Management course.

Bank Risk Types and Trends Who has not ever dealt with a Bank? We all have had to deal with a bank at some point in our lives, whether it was opening an account or barrowing money for some sort of a venture. I personally deal with Sun Trust Bank. Sun Trust Bank is based out of Atlanta, Georgia with assets that total one hundred ninety four billion and deposit totals of one hundred fifty two billion. Sun Trusts services that they offer to customers consist of: deposit, credit trust, investment, mortgage, asset management, securities brokerage, and capital market. (http://investors.suntrust.com, pg 1) The risks that Sun Trust Bank has to deal with in a day to day struggle are Compliance, Operational, Financial, and Reputational risk. The risk trends for Sun Trust depend on the market changes daily, as well as barrowers and payments made on time. Risk Mitigation for Sun Trust is controlled through enhanced policies, processes and procedures to manage adequately. The credit risk of Sun Trust would be jolted by interest rates rising or falling, and the customer’s timely pay back of money loaned. Sun Trust lending process is determined by capitalization, as well as solvency and is determined by the economic growth or down swings. (http://www.federalreserve.gov, pg. 1)

References http://investors.suntrust.com/news-detail/2016/Suntrust-to-speak-at-the-bernstein-strategic-decisions-conference/default.aspx http://www.federalreserve.gov/bankinfoeg/topics/credit_risk.htm

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