As a small-cap finance stock with a market capitalisation of US$5.0b, the risk and profitability of CIT Group Inc. ( NYSE:CIT ) are largely tied to the underlying economic growth of the region it operates in US. Since a bank profits from reinvesting its clients' deposits in the form of loans, negative economic growth may lower deposit levels and demand for loan, adversely impacting its cash flow. After the GFC, a set of reforms called Basel III was imposed in order to strengthen regulation, supervision and risk management in the banking sector. The Basel III reforms are aimed at banking regulations to improve financial institutions' ability to absorb shocks caused by economic stress which could expose banks like CIT Group to vulnerabilities. Its financial position may weaken in an adverse macro event such as political instability which is why it is crucial to understand how well the bank manages its risks.