Bank Risks During Euro Currency Conversion and The Role of Artificial Intelligence in Their Management
Bank Risks During Euro Currency Conversion and The Role of Artificial Intelligence in Their Management

Author(s): Rangel Mryanov
Subject(s): Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Euro adoption; Banking risk management; Artificial intelligence; Financial stability; Predictive analytics
Summary/Abstract: This paper investigates the key banking risks associated with the adoption of the euro in Bulgaria and evaluates the role of artificial intelligence (AI) in mitigating these risks. The study identifies five major categories of exposure that may intensify during the currency conversion process: credit, liquidity, operational, market, and reputational risks. Through analysis of theoretical concepts, policy reports, and real-world case studies, the paper highlights both the anticipated economic benefits of euro adoption – such as lower transaction and financing costs, increased investment, and enhanced financial stability – and the short-term operational and regulatory challenges for the banking sector. The research shows that AI-driven technologies, including predictive analytics, fraud detection systems, automation tools, and real-time market monitoring, can significantly strengthen risk-management frameworks and improve resilience during structural financial changes.

• Details
• Contents