Book Title: Multidisciplinary Research in the Age of Artificial Intelligence
Chief Editors: Dr. Jagdish Kumar Sahu, and Dr. Byram Anand
Associate Editors: Dr. J. Jayamani, and Albeen Josebh Ahmed
Co-Editors: Dr. Sunakshi Verma, and Mr. Pankaj Bharat Devre
ISBN: 978-93-7183-018-8
Chapter: 4
DOI: https://doi.org/10.59646/781/4
Author: Dr Simu Rajendran
Abstract
The banking industry operates in an environment defined by constant change, regulatory pressure, and increasing customer expectations. In this context, the effectiveness of credit operations and risk management systems is central to the stability, profitability, and resilience of financial institutions. Banks must not only extend credit efficiently but also maintain robust mechanisms to assess, monitor, and mitigate the risks inherent in lending. These functions form the backbone of sound banking practice and directly influence financial performance and public confidence.