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Serbian Banks Strengthen Balance Sheets as AI Adoption in Risk Management Remains Limited

Serbia’s financial institutions have strengthened their conventional measures of resilience while artificial intelligence remains at an early stage in core risk-management operations. Banks are improving across capital, liquidity, profitability and credit quality, but recent industry assessments place AI maturity in Serbian banking risk functions at only around 28%. The contrast highlights two different tracks in the sector’s modernisation. Customer-facing banking has undergone extensive digitalisation, while the application of advanced analytics to internal financial controls remains less developed. Customer digitalisation advances…