MECHANISMS FOR MANAGING RISKS AND IMPROVING LENDING EFFICIENCY THROUGH ARTIFICIAL INTELLIGENCE
Keywords:
Artificial intelligence, commercial bank, credit risk, financial performance, credit scoring, ECL, IFRS 9, early warning system, RAROC, collateral monitoring, fraud prevention, model risk, Aloqabank.Abstract
This article examines mechanisms for using artificial intelligence to manage risks and improve lending efficiency in commercial banks, drawing on the banking system of Uzbekistan and the case of Aloqabank. Comparative and ratio analyses are applied to the bank’s 2024 annual report and financial statements prepared under International Financial Reporting Standards, together with Central Bank statistics as of 1 March 2026. The analysis identifies the links between a unified data repository, intelligent credit scoring, expected credit loss estimation, early warning, risk-based pricing, collateral monitoring and transaction monitoring. It emphasises that loan loss allowances should reflect underlying risk, rather than be reduced as an end in themselves. Practical recommendations for Aloqabank cover the integration of artificial intelligence throughout the credit life cycle, model risk controls and the financial evaluation of pilot projects. The effectiveness of the proposed mechanisms requires separate testing and subsequent monitoring.
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