The credit risk a bank faces is the risk resulting specifically from:

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Credit risk refers to the risk of loss that a bank faces if its borrowers or counterparties fail to repay their loans or meet their contractual obligations. Therefore, the credit risk a bank faces results specifically from some of the bank's loans not being repaid. Option A (the economy entering a recession) and option B (interest rates falling) can affect a bank's overall risk exposure, but these factors do not directly relate to credit risk. Option D (the bank experiencing a decrease in deposits) is also not directly related to credit risk, as deposits are a liability, not an asset, for a bank.

The Credit Risk a Bank Faces Is the Risk Resulting