Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
P-Index
This Author published in this journals
All Journal Journal of Islamic Monetary Economics and Finance
Rudy Marhastari
Bank Indonesia Institute, Bank Indonesia, Jakarta, Indonesia
Economics, Econometrics & Finance

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
Does Cybersecurity Influence the Impact of AI on Bank Risk-Taking? Evidence from Dual-Banking Countries Hasanul Banna; Masagus M. Ridhwan; Rudy Marhastari
Journal of Islamic Monetary Economics and Finance Vol. 12 No. 2 (2026)
Publisher : Bank Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21098/jimf.v12i2.3476

Abstract

Using 5,806 bank–year observations from 17 Asian and African economies over the years 2012–2022, we examine how artificial intelligence (AI) adoption influences bank risk-taking and whether cybersecurity capacity moderates this relationship. We find that AI intensity is associated with higher risk-taking at prevailing adoption levels.  We also note that their relationship is concave, suggesting a shift from “risk-ramping” during early deployment to “discipline” as model governance and monitoring mature. We also find that stronger cybersecurity attenuates AI’s marginal risk effect. Heterogeneity is evident: conventional banks exhibit higher turning points, reflecting a longer risk ramp, whereas Islamic banks peak earlier, consistent with stricter governance structures and more risk-averse practices. Results are robust in various sensitivity analyses. The findings suggest that AI scaling in banking requires synchronized advancement in cybersecurity and a model-risk management framework, aligned with evolving supervisory doctrine on digital resilience and AI governance.
Co-Authors Hasanul Banna Masagus M. Ridhwan