Market Risks - Key Dependencies Sample for a Banking Sector

                                           Market Risks - Key Dependencies Sample for a Banking Sector

PART: 14

10.   Market Risks – Key Dependencies

 These issues are addressed in greater depth in the Bank’s ICAAP document.

1)  The Plan depends on the continuing successful expansion of the domestic retail and commercial banking businesses of the Bank and on the ongoing growth and development of the Spanish speaking community in the USA. In the early years of the plan a possible double-dip economic downturn in the USA will mitigate against any significant expansion.

2)     The maintenance of international business envisaged in the Plan depends on cooperation with other members of the ABC Bank Group.  A renewal of turmoil in Brazil’s political and economic structures, which appears unlikely at this time, could have an adverse impact on both the Group and the Bank.  Similarly unforeseen but possible political change or instability in Chile could have an adverse impact within the Group.  However, the Group has diversified its geographic locations and business segments in order to mitigate this risk.