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.”
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.
Manage risk proactively.
Themes
Mood
Type
When to use this quote
- investment decisions
- regulatory policy
- risk assessment
Key Concepts
Questions to Reflect On
- How do you evaluate financial risk?
- What safeguards reduce banking hazards?
Risk perception can be underestimated.