Risk of the collapse of a bank credit network

Europe and Japan have both adopted negative interest rate policies as part of their monetary easing measures. However, despite the benefits that are claimed to be associated with increased lending demand, significant concerns exist regarding an increased burden on private financial institutions as a result of the application to their excess reserves. In this paper, we focus on the risks associated with increased investment of surplus funds for the operation of financial institutions. We propose an agent-based model for interlocking specific bankruptcy based on changes in financial situations as a result of market price fluctuations involving assets held by financial institutions. To extend the proposed model to handle macro market shocks, we describe decision making regarding funds that are surplus to the operation of financial institutions. Additionally, we analyze the impact of price declines involving marketable assets on financial systems.

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Artificial intelligence applications in auditing processes in the banking sector

Albahsh,

Al-Anaswah

2024

COC

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This research provides an in-depth examination of the role artificial intelligence (AI) plays in revolutionizing bank auditing and quality control processes. By integrating AI technologies, the banking industry stands on the edge of a transformative era where the efficiency, accuracy, and security of auditing operations are significantly enhanced. This systematic mapping study (SMS) explores the extent of AI’s adoption in bank audits, specific areas of its application, its impact on auditing processes, challenges, and the dynamics of human-AI collaboration in auditing. The findings reveal AI’s pivotal roles in enhancing credit risk analysis, operational efficiency, fraud detection, cybersecurity, and bankruptcy prediction, through analyzing complex data, identifying patterns, and ensuring financial stability, which leads to streamlining operations, detecting fraudulent activities through advanced pattern recognition, boosting cybersecurity measures, and accurately forecasting bankruptcy risks, thereby offering a robust tool for risk management and decision-making in the banking sector. By filling a critical gap in the literature, the study advances our understanding of AI’s capabilities, limitations, ethical considerations of AI integration, and the need for further research to overcome technological challenges and ethical dilemmas. The comprehensive analysis offers valuable insights for academic debate, businesses, and regulators to enhance the quality, efficiency, and security of financial auditing practices in the digital age.

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Risk of the collapse of a bank credit network

Cited by 3 publications

References 13 publications

Analysis of the Influences of Central Bank Financing on Operative Collapses of Financial Institutions Using Agent-Based Simulation

Analysis of the Influences of Central Bank Financing on Operative Collapses of Financial Institutions Using Agent-Based Simulation

Agent-Based Simulation of Financial Institution Investment Strategy Under Easing Monetary Policy for Operative Collapses

Artificial intelligence applications in auditing processes in the banking sector

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