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Banking Quote by James Surowiecki

“The fundamental problem with banks is what it's always been: they're in the business of banking, and banking, whether plain vanilla or incredibly sophisticated, is inherently risky.” quote by James Surowiecki
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“The fundamental problem with banks is what it's always been: they're in the business of banking, and banking, whether plain vanilla or incredibly sophisticated, is inherently risky.”

James Surowiecki

About This Quote

Source Book: The Wisdom of Crowds, 2004

Banks inherently involve risk, whether simple or complex, and this has always been their core issue.

In simple terms: Banking is fundamentally risky business.

Key Takeaway

Manage risk proactively.

Themes

finance risk banking

Mood

analytical cautious

Type

educational informative

When to use this quote

  • investment decisions
  • regulatory policy
  • risk assessment

Key Concepts

systemic risk financial engineering

Questions to Reflect On

  • How do you evaluate financial risk?
  • What safeguards reduce banking hazards?
A Different Perspective

Risk perception can be underestimated.

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