Skip to main content

Research Repository

Advanced Search

Artificial Intelligence and Bank Soundness: Between the Devil and the Deep Blue Sea - Part 2

Ayadurai, C.; Joneidy, S.

Artificial Intelligence and Bank Soundness: Between the Devil and the Deep Blue Sea - Part 2 Thumbnail


Authors

S. Joneidy



Contributors

A. Petrillo
Editor

Abstract

Banks have experienced chronic weaknesses as well as frequent crisis over the years. As bank failures are costly and affect global economies, banks are constantly under intense scrutiny by regulators. This makes banks the most highly regulated industry in the world today. As banks grow into the 21st century framework, banks are in need to embrace Artificial Intelligence (AI) to not only to provide personalized world class service to its large database of customers but most importantly to survive. The chapter provides a taxonomy of bank soundness in the face of AI through the lens of CAMELS where C (Capital), A(Asset), M(Management), E(Earnings), L(Liquidity), S(Sensitivity). The taxonomy partitions challenges from the main strand of CAMELS into distinct categories of AI into 1(C), 4(A), 17(M), 8 (E), 1(L), 2(S) categories that banks and regulatory teams need to consider in evaluating AI use in banks. Although AI offers numerous opportunities to enable banks to operate more efficiently and effectively, at the same time banks also need to give assurance that AI ‘do no harm’ to stakeholders. Posing many unresolved questions, it seems that banks are trapped between the devil and the deep blue sea for now.

Citation

Ayadurai, C., & Joneidy, S. (2021). Artificial Intelligence and Bank Soundness: Between the Devil and the Deep Blue Sea - Part 2. In A. Petrillo (Ed.), Operations Management - Emerging Trend in the Digital Era. intechopen. https://doi.org/10.5772/intechopen.95806

Acceptance Date Feb 1, 2021
Online Publication Date Feb 3, 2021
Publication Date Mar 3, 2021
Deposit Date Mar 30, 2021
Publicly Available Date Mar 31, 2021
Book Title Operations Management - Emerging Trend in the Digital Era
Chapter Number 14
DOI https://doi.org/10.5772/intechopen.95806
Public URL https://durham-repository.worktribe.com/output/1625715
Publisher URL https://www.intechopen.com/books/operations-management-emerging-trend-in-the-digital-era/artificial-intelligence-and-bank-soundness-between-the-devil-and-the-deep-blue-sea-part-2

Files

Published Book Chapter (807 Kb)
PDF

Publisher Licence URL
http://creativecommons.org/licenses/by/3.0/

Copyright Statement
© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3.0 License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.





You might also like



Downloadable Citations