1.Credit risk is one of the oldest and most important financial risks in commercial banks for 700 years. Its broad existence is an important character in modern finance, the root of bad assets, liquiditycrisis in banks, and also is one of the basic reasons for territorial or global crisis.
2.This contrasts with the situation at the height of the Asian economic crisis when there was a liquidity crunch, and inter-bank rates, which are the rates at which banks borrow from or lend to each other, hit as high as 12%.
