Neural network-based liquidity risk prediction in Indian private banks
Liquidity risk stands as a pivotal financial concern within the Indian banking landscape, particularly in the context of Basel Recommendation. This recommendation underscores the vital role of liquidity risk management, urging banks to establish robust information systems for the assessment, anticip...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Intelligent Systems with Applications |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667305323001473 |
| _version_ | 1797287570341625856 |
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| author | Dr Sumi KV |
| author_facet | Dr Sumi KV |
| author_sort | Dr Sumi KV |
| collection | DOAJ |
| description | Liquidity risk stands as a pivotal financial concern within the Indian banking landscape, particularly in the context of Basel Recommendation. This recommendation underscores the vital role of liquidity risk management, urging banks to establish robust information systems for the assessment, anticipation, and control of liquidity risks. Recognizing the nuanced nature of this risk, banks across India employ diverse tools and methodologies in managing liquidity risk. This study delves into the efficacy of artificial neural networks (ANNs) in forecasting liquidity risk within the private banking sector in India. Drawing from prior research and leveraging accounting data, a unique structure and architecture for a multilayer perceptron neural network was developed. Subsequently, the study harnessed this ANN framework, along with Matlab software, to forecast liquidity risk in private Indian banks over the period spanning 2009 to 2019. The research outcomes shed light on the promising potential of artificial neural networks as a valuable tool for predicting liquidity risk in private Indian banks. This discovery holds significance in enhancing the resilience and stability of the Indian banking sector by providing more precise and timely insights into liquidity risk management. |
| first_indexed | 2024-03-07T18:35:15Z |
| format | Article |
| id | doaj.art-6e70882cc64a41ef9f1a29c81190520b |
| institution | Directory Open Access Journal |
| issn | 2667-3053 |
| language | English |
| last_indexed | 2024-03-07T18:35:15Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Intelligent Systems with Applications |
| spelling | doaj.art-6e70882cc64a41ef9f1a29c81190520b2024-03-02T04:55:19ZengElsevierIntelligent Systems with Applications2667-30532024-03-0121200322Neural network-based liquidity risk prediction in Indian private banksDr Sumi KV0Assistant Professor on Contract , Institute of Management in Kerala, Karyavattom Campus, University of Kerala, Trivandrum, Kerala, IndiaLiquidity risk stands as a pivotal financial concern within the Indian banking landscape, particularly in the context of Basel Recommendation. This recommendation underscores the vital role of liquidity risk management, urging banks to establish robust information systems for the assessment, anticipation, and control of liquidity risks. Recognizing the nuanced nature of this risk, banks across India employ diverse tools and methodologies in managing liquidity risk. This study delves into the efficacy of artificial neural networks (ANNs) in forecasting liquidity risk within the private banking sector in India. Drawing from prior research and leveraging accounting data, a unique structure and architecture for a multilayer perceptron neural network was developed. Subsequently, the study harnessed this ANN framework, along with Matlab software, to forecast liquidity risk in private Indian banks over the period spanning 2009 to 2019. The research outcomes shed light on the promising potential of artificial neural networks as a valuable tool for predicting liquidity risk in private Indian banks. This discovery holds significance in enhancing the resilience and stability of the Indian banking sector by providing more precise and timely insights into liquidity risk management.http://www.sciencedirect.com/science/article/pii/S2667305323001473Liquidity riskCredit riskSystematic riskANN |
| spellingShingle | Dr Sumi KV Neural network-based liquidity risk prediction in Indian private banks Intelligent Systems with Applications Liquidity risk Credit risk Systematic risk ANN |
| title | Neural network-based liquidity risk prediction in Indian private banks |
| title_full | Neural network-based liquidity risk prediction in Indian private banks |
| title_fullStr | Neural network-based liquidity risk prediction in Indian private banks |
| title_full_unstemmed | Neural network-based liquidity risk prediction in Indian private banks |
| title_short | Neural network-based liquidity risk prediction in Indian private banks |
| title_sort | neural network based liquidity risk prediction in indian private banks |
| topic | Liquidity risk Credit risk Systematic risk ANN |
| url | http://www.sciencedirect.com/science/article/pii/S2667305323001473 |
| work_keys_str_mv | AT drsumikv neuralnetworkbasedliquidityriskpredictioninindianprivatebanks |