aidebaobao

If you are asked to compare with an industry then you can go ahead if not then you have to consider it on a standalone basis.

For the example you just gave, I will say the risk for the tolerance for the endowment is low but for the bank it is high. However, regulatory requirements usually force the risk tolerance down as the central bank will frown on a bank that prefers to invest in securities rather than lend. Regulations also restrict the type of assets banks can invest in and that makes it very uncommon for a bank to have a large surplus.