Interest rates and risk in the banking sector

Changes in banks' clients, is reflected on the one hand to the increase in deposits and the other in increased demand for financing. The banking sector in recent years a high increase in client deposits, which is connected a significant decline in deposit interest rates. Banks also declining revenues from traditional banking charges. The increase in client deposits at low interest rates, forcing banks to seek new ways to provide credits and loans when falling aversion to credit risk. Risk aversion expressed by the ratio loans in default on average assets is dependent on the size of banks, particularly their client orientation.