INFLUENCE OF CREDIT RISKS ON THE ACTIVITY OF BANKS

This article discusses the influence of credit risks on the activity of banks. Credit risk is the main aspect of banking operations and refers to the potential loss caused by the failure of the borrower to fulfill his financial obligations. In the dynamic landscape of modern banking, credit risk management is important. The impact of credit risks on banking is multifaceted, affecting not only the financial stability of individual banks, but also the broader economy.