Banking, at its core, is a business of trust. A bank opens its doors each morning with one simple promise: to lend money and get it back. That promise, however, is anything but simple. Every loan issued is a bet on the future, a wager that the borrower will repay, the economy will hold steady, and the institution will remain solvent. And in a world where uncertainty is constant, banks must do more than hope. They must protect themselves.
This is where the real business of banking begins. Beyond the marble floors and digital apps, banks are engaged in a daily balancing act. They must lend enough to stay profitable, but not so much that they risk collapse. They must assess risk, price it, and manage it. And above all, they must hold enough capital to absorb the shocks that inevitably come.