Because banks may earn as little as one percent on net profit total assets, they are especially sensitive to the possibility of a loss.

Name: Because banks may earn as little as one percent on net profit total assets, they are especially sensitive to the possibility of a loss.
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Question

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Banks generally have low profit margins due to high competition, regulatory restrictions, and risk management. As a result, they are very sensitive to the possibility of a loss or even a slight decrease in profitability.

Because Banks May Earn as Little as One Percent on Net