← Home
Risks
1. Interest Rate Risk: Since Commerce Bank is a publicly traded company, its earning potential is highly dependent upon prevailing interest rates. As interest rates fluctuate, so too does the bank’s ability to generate profit.
2. Regulatory Risks: As a bank, Commerce Bank is subject to various banking regulations. Compliance with such regulations impacts the bank’s bottom line.
3. Cybersecurity Challenges: The banking industry is facing increasing threats from cyber criminals. As such, Commerce Bank must invest in protection from such threats.
4. Competition: The banking industry is highly competitive and it can be difficult for Commerce Bank to differentiate itself from the competition. This can ultimately lead to pricing pressures that can threaten profit margins.
5. Credit Risk: As a lender, Commerce Bank is exposed to risks associated with lending to businesses and consumers. If borrowers fail to repay debt, the bank could be exposed to losses.