Ordinarily, investors are quick to overlook risks in the pursuit of profit. For the past 18 months, the converse has been true in the banking sector. This may be about to change. During the past week, each of the major banks released a profit result or 3rd quarter update. The reaction to ANZ’s release was perhaps the most telling. Whilst ANZ’s result was far from terrific, the share price rallied 5.2% as the market re-based its overly negative outlook. I explain the key pressures facing our banks in the article below.