Because of the large amount of equity on a typical commercial bank balance sheet, credit risk is not a significant risk to bank managers.

Question

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Credit risk is a significant risk for commercial bank managers, as a significant portion of their balance sheet is made up of loans and other credit-related instruments. Defaults, loan delinquencies, and other credit events can significantly impact the bank's profitability and financial stability.

Because of the Large Amount of Equity on a Typical