Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1

Ayadurai, C.; Joneidy, S.

doi:10.5772/intechopen.95539

Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1

Ayadurai, C.; Joneidy, S.

Authors

Dr Charmele Ayadurai charmele.ayadurai@durham.ac.uk
Assistant Professor

S. Joneidy

Contributors

A. Petrillo
Editor

Abstract

Banks soundness plays a crucial role in determining economic prosperity. As such, banks are under intense scrutiny to make wise decisions that enhances bank stability. Artificial Intelligence (AI) plays a significant role in changing the way banks operate and service their customers. Banks are becoming more modern and relevant in people’s life as a result. The most significant contribution of AI is it provides a lifeline for bank’s survival. 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 opportunities from the main strand of CAMELS into distinct categories of 1 (C), 6(A), 17(M), 16 (E), 3(L), 6(S). It is highly evident that banks will soon extinct if they do not embed AI into their operations. As such, AI is a done deal for banks. Yet will AI contribute to bank soundness remains to be seen.

Citation

Ayadurai, C., & Joneidy, S. (in press). Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1. In A. Petrillo (Ed.), Operations Management - Emerging Trend in the Digital Era. intechopen. https://doi.org/10.5772/intechopen.95539

Online Publication Date	Jan 28, 2021
Deposit Date	Mar 30, 2021
Publicly Available Date	Mar 31, 2021
Book Title	Operations Management - Emerging Trend in the Digital Era
Chapter Number	13
DOI	https://doi.org/10.5772/intechopen.95539
Public URL	https://durham-repository.worktribe.com/output/1648979
Publisher URL	https://www.intechopen.com/books/operations-management-emerging-trend-in-the-digital-era/artificial-intelligence-and-bank-soundness-a-done-deal-part-1

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© 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.