Publication Details
Abstract
This study examines the risks associated with commercial banks’ activities in the securities market and their specific characteristics. The research highlights that participation in securities markets enables banks to diversify income sources and enhance profitability; however, it also exposes them to various types of risks, including market risk, interest rate risk, credit risk, and liquidity risk. The paper analyzes the structure of banks’ securities portfolios, risk assessment approaches, and risk management practices applied in international banking systems. Special attention is given to the role of portfolio diversification, risk measurement techniques, and regulatory requirements in mitigating potential losses. The findings suggest that improving risk management frameworks, strengthening internal control systems, and applying advanced analytical tools can significantly reduce vulnerabilities and enhance financial stability in commercial banks.