The subprime crisis is a good example of the credit risk faced by financial institutions.

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The subprime crisis was caused by defaults on mortgage loans that had been given to high-risk borrowers (subprime borrowers). This resulted in significant losses for financial institutions that had invested in these mortgages or had provided financing for them. Thus, the subprime crisis highlights the credit risk faced by financial institutions.

The Subprime Crisis Is a Good Example of the Credit