Generic risks to financial institution

Generic Risks to Financial Institutions Student’s Name Institutional Affiliation Course Professor Date Generic Risks to Financial Institutions While comparing the risk influences shared by Valley National Bank (VLY) and Washington Federal Inc (WAFD) in their respective 10-k filings, the two organizations underscore various common risks even though unique concerns can be identified, specific to business models and market settings. This report offers a comprehensive analysis of the specific similarities and differences of the risk factors shared by each institution, along with why specific risks are underscored by one institution over the other. Common Risks Based on their reports, both VLY and WAFD recognize the possible adverse effects of deteriorating economic conditions. For example, VLY underscores how frail economic circumstances, essentially in their crucial markets of New Jersey, Florida, and New York City, might negatively influence their financial state and processes (AnnualReports.com, 2023). On the other hand, WAFD classifies that economic decline, reduction in housing prices, and higher rate of unemployment might lead to financial pressure on debtors, which could affect the organization's functioning (WaFdBank, 2019). VLY and WAFD shows concerns in the risk of interest rates. For instance, WAFD highlights the risks linked to instabilities in market interest rates and the probable effects of LIBOR modification on the organization's financial performance (WaFdBank, 2019). On the other hand, VLY emphasizes the understanding of their net interest earnings to fluctuations in interest rates and the larger financial settings. Moreover, the companies share concerns about the capability to examine and manage credit risk. VLY describes the effects of negative economic ...