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Market Risk Review 2011
During the normal course of its business, the Bank is exposed to a number of risks, key of which are the credit risks of its development related exposures as well as market and counterparty risks related to its treasury activities. Substantially all of the Bank‟s business activities are subject to the risk that market prices and rates (more importantly interest and exchange rates) will move and result in profits or losses. The Bank does not seek to profit from predicting or anticipating the future level or direction of interest or exchange rates and therefore strives to limit exposures to these market related risks, while earning a reasonable return on its treasury assets.