Analysis of Factors Affecting the Effectiveness of Risk Assessment in Commercial Banks

This study analyzes the key factors affecting the effectiveness of risk assessment in commercial banks. In the context of increasing financial intermediation and expanding lending activities, accurate risk evaluation has become a critical determinant of banks’ financial stability. The research focuses on internal and external factors influencing risk assessment, including the quality of credit risk models, information asymmetry, borrowers’ financial transparency, macroeconomic conditions, and the efficiency of monitoring systems. Particular attention is given to the role of non-performing loans (NPLs) as an indicator of weaknesses in risk assessment practices. The findings highlight the necessity of improving scoring models, strengthening internal rating systems, and integrating advanced technologies such as artificial intelligence and big data analytics. The study concludes that enhancing risk assessment mechanisms contributes to reducing NPL levels, improving credit portfolio quality, and ensuring sustainable banking sector development.