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Risks Faced by Thrift Operators

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What risks are unique to thrift operations compared to commercial banks?

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The unique risks faced by Thrift operators is outlined in the paper.

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What risks are unique to thrift operations compared to commercial banks?

Thrifts are more appropriate for US consumers. The Law demands that 65% of the lending portfolio of a thrift operation should comprise of consumer loans.

The risks unique to thrift operations are:
1. They are small and local. Therefore they do not have the resources or the spread of a large national bank.
2. While competing with National Banks they run the risk of having a much smaller product set. They do not have the resources to offer wealth management, foreign exchange and insurance products and services, unlike commercial banks. The number of thrifts has been diminishing over the years with 6,835 in ...

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