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What represent for the bank, the consolidation of the majority of its customers in one sector?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/04/02
Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

Risk factor--------------------------------------------------

Subha Rajeev
by Subha Rajeev , Freelancer , Self Employed

Bank will always want to assess the risks assocated with the business of the company and if majority of the customers are consolidated in one sector then this indicates that the company's trades are concentrated more in that sector alone thereby posing a market risk. Any downward market movement would not only impact the profitability of the organisation but would also increase the risk of a tight position on the fund flow. 

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