Challenges and prospects of Artificial Intelligence: Case of participatory banks in Morocco

dans la gestion du risque de contrepartie: Défis et perspectives pour les banques participatives au Maroc

Camélia Sehaqui and Mohamed Haissoune
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Camélia Sehaqui: Université Hassan 1er [Settat]
Mohamed Haissoune: Université Hassan 1er [Settat]

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Abstract: This article seeks to analyze the application of artificial intelligence (AI) in counterparty risk management, focusing on Moroccan participatory banks. To this end, the authors first examine the reality of AI and its applications in Islamic finance before exploring how it can evaluate and mitigate the risks inherent to these institutions. The qualitative methodology used is based on semi-structured interviews with eight risk directors from Moroccan participatory banks and windows. The interviews were transcribed and subjected to systematic thematic analysis. The coding process identified recurring themes, which were then grouped into broader categories to identify key trends and perceptions about the use of AI in counterparty risk management. The survey results reveal that none of the banks interviewed currently use AI for counterparty risk management, although they intend to introduce it in the future. The expected benefits include increased accuracy in risk assessment and process optimization through automation. However, potential obstacles include financial constraints and a shortage of AI expertise. Indeed, AI could present promising prospects for strengthening financial stability and ensuring Sharia compliance within participatory banks. For effective integration, investments in resources and AI training are necessary. Overall, the future of AI in counterparty risk management promises to bring innovation and operational efficiency to the participatory finance sector.

Keywords: Artificial Intelligence AI; Participatory Finance; Risk management; Counterparty Credit Risk; Intelligence Artificielle; Finance Participative; Gestion des risques; Risque de contrepartie (search for similar items in EconPapers)
Date: 2024-09-02
New Economics Papers: this item is included in nep-ara, nep-ban, nep-ipr, nep-isf and nep-rmg
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, 2024, ISSN: 2658-8455 Volume 5, Issue 9 (2024), pp. 301-314., 5 (9), pp.301-314. ⟨10.5281/zenodo.13622967⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04690166

DOI: 10.5281/zenodo.13622967

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