#USBankingCreditRisk

US banking credit risk is the fundamental risk of losses from borrowers failing to repay loans. It's a primary concern, managed through credit risk rating systems, rigorous underwriting (using metrics like the five Cs of credit), and portfolio diversification. Current trends show banks leveraging advanced data analytics and AI to enhance risk modeling and cyber defenses. Economic conditions, commercial real estate exposures, interest rate shifts, and evolving regulations (like potential Basel III Endgame adjustments) remain key factors influencing this risk landscape.