Recent study by bouthahab and geador 2014 found libyan. Banking, credit, and currency as a result of its world war ii association, libya became a member of the british sterling bloc when independence was established in 1951. This is an empirical study using mainly primary data collected through a wellstructured questionnaire. However, both groups are pinning strong hopes on the newlyformed libyan stock markets role and ongoing economic reforms to play a key role in improving disclosure practices. The banking sector in libya encountered large and very important changes with the installation of a new national payments system, a program which was implemented in 2005 following consultation with the world bank panorama report, 2008. From employees prespective a thesis submitted to the uum college of business in partial fulfillment of the requirement for the degree master of science international accounting university utara malaysia by nawal omar m towati 808765. The libyan banking sector has experienced significant developments particularly following the issuance of laws concerning banks and money by the central bank of libya. Cash crises political, exposed weakness of libya banking system. However, little work in the remit of km has been evidenced in the libyan financial sector the omission of which is the focus of this research.
The objective of the dialogue and planning exercise was to bring libyans from different backgrounds together to come up with a locally defined, libyan owned vision and plan for recovery and. Pdf the effects of banking sector and foreign investment. Stateowned banks are the main source of financing in the economy and. The impact of lack financial services on the growth of. Within the service sector, the commercial banking sector has been playing a significant role in the development of the libyan economy. Currently, libya has started adopting islamic banking system. Article pdf available in the journal of private equity 172. Introduction the export of crude oil is the backbone of the libyan economy, contributing around 95 percent of the export revenues, approximately onequarter of gdp, which represents 60 percent of the public sector wages. The major issue for rajab is that current regulation does not allow for substantial easing of the liquidity. Pdf study of customer satisfaction in the banking sector in. This paper aims to demonstrate, through research, the possibility of the transformation of libyan commercial banks from the traditional style of work to the modern style based on the idea of electronic banking, by. Boyd, d ed procs 22nd annual arcom conference, 46 september 2006, birmingham, uk, association of researchers in construction management, 9911002.
In the search for\ud competitive advantage, there is a need to measure service quality to better understand its\ud antecedents and consequences, and establish methods for its improvement. However libya was still using traditional methods in commercial banking systems. Central bank of libya works to achieve the targets of stability in the financial and banking sector the central bank is committed to help maintain price stability, financial stability and to encourage conditions to support economic stable development in the national economy. At least 150,000 new jobs are required each year for the next five years, in addition to the 860,000 jobs. The findings based on three different independent variables service quality, customer loyalty and security showed that all these variables influenced consumers satisfaction in libyan banking sector. Shortly after independence, a national currency was created. This study attempts to provide evidence on the relationship between corporate governance mechanisms, auditor quality, and reliability of audited financial information in libya. Regulate monetary policy and supervise currency conversion transactions within libya and abroad. The libyan banking industry has experienced considerable deregulation since the early 2000s as a consequence of the new libyan policy, therefore it is of particular interest to examine efficiency and risk issues. Libyan banks failed to comply fully with mandatory disclosure requirements in any of the sample years 20002006. To download a pdf version of the full 2019 libya country profile. Bank activities are officially carried out by formal commercial banks, but there are many informal financial activities and alternative exchange rates in the. These assets were invested abroad due to the comprehensive oil occurrence in lybia.
Dynamics impacting libyan customers to adopt mobile banking. Influences on the development of the libyan banking sector omer m elsakit faculty of economics university of zawia, libya abstract. Study of customer satisfaction in the banking sector in libya. This research was conducted using qualitative method to obtain the data. Efficiency and determinants in libyan banking semantic scholar.
The primary data for this study is gathered by opting survey technique so the data used in this study is primary in nature. Abstractthe purpose of this paper is to evaluate the customer satisfaction of the banks sector in libya, based on customer perception regarding service quality. Cost efficiency and economies of scale in libyan banking. Corporate governance, auditor quality and the reliability.
However, oil is a natural resource, overuse it may lead to total exhaustion. Pdf study of customer satisfaction in the banking sector. A significant level of customer satisfaction is among the. The results of this study will be useful for policymaking by authorities in libya that are responsible for the development of banking sector, especially the islamic banking window system. Libyas monetary crisis is a crisis of confidence and governance. Notable progress has been made in banking sector reforms box 1. Libyas transformation to an islamic financial system. These oil revenues and a small population have given libya one of the highest nominal per capita gdp in africa.
Libyas financial sector is underdeveloped and largely dominated by the public sector. Its significance\ud increased after the 2003 lifting of the united nations sanction. An assessment of tqm implementation, and the influence of. The impact of lack financial services on the growth of libyan. The libyan service sector is the second contributor to the libyan gross domestic product gdp after the oil sector.
Libya country economic report english the world bank. Quality of banking services in libyan banks research. Two of the three remaining public commercial banks were merged in. Private sector clients no longer have to work through the large stateowned monopolies, and the commercial banks themselves are free to develop banking relationships abroad. Pdf influences on the development of the libyan banking. The agency responsible for regulating the banking sector is the central bank of libya clb. Our learningled environment enables research to thrive, providing the best support for students. This was vividly illustrated by the dinars continued slide against the dollar throughout 2017, despite the fact that public expenditures shrank and libyas national oil company noc managed to double the amount of oil it. Sizeable oil wealth has supported decent living standards for libyas population and socioeconomic development compares favorably with standards in other middle eastern and north. Indicators of banking sector central bank of libya.
The main source of funding for the lna is likely an unofficial libyan currency printed in russia. Bank of libya, and it shall provide banking services to those units. Influences on the development of the libyan banking sector. Financial disclosure practices in developing countries. We need these changes to allow the banking sector to work freely with security. Factors influence employee engagement leveraging by. In 2005, the central bank of libya played a key role in organizing banks and restructuring capitals inducing them to. The bank shall not pay any interest on the sums and balances deposited in the accounts of public administrative units, and it shall not collect any fee for the banking services that it provides to such units. Impact of the libyan crisis on the tunisian economy. Pdf the effects of banking sector and foreign investment on. The statistic shows the amount of libyan assets frozen abroad as of september 2011, by country. It is the first exploratory study to have assessed tqm implementation, and to have. The libyan economy is dominated by hydrocarbons and the public sector.
This was vividly illustrated by the dinars continued slide against the dollar throughout 2017, despite the fact that public expenditures shrank and libyas national oil company noc managed to double the amount of oil it produced between april and july last year. In the following sections, the development of the banking sector in libya will be broken into several stages, based on. Sep 02, 2011 the statistic shows the amount of libyan assets frozen abroad as of september 2011, by country. Regulate credit and banking policy and supervise its implementation. Nonfinancial performance measurement in the libyan. Journal of economics, business and management, vol. Libyan banking industry, ebanking, technology adoption. The excess liquidity held by the central bank should be invested in the private sector to kickstart the economy. Apr 23, 2016 cash crises political, exposed weakness of libya banking system. The study concluded that there is a clear decline in the quality of e banking services provided by. An empirical analysis of audited financial statements. The libyan banking sector is currently facing huge challenges following the political chaos that ensued after the overthrow of col. These banks constitute almost ninety percent of libyas banking sector assets. The financial side of the libyan conflict and its security.
Access to basic needs is challenging, and access to housing finance in a country listed insecure is really challenging. The international finance corporation ifc, the world bank s private sector arm, is keen to support the private sector in libya through its investment and advisory services. Libyan banking sector, historical development of libyan banks, social and. Study of customer satisfaction in the banking sector in. Because libyan banking institutions are government controlled, instability in political leadership is likely to lead to greater destabilisation in the way they operate. Libya cahf centre for affordable housing finance africa. According to arab banking service 1995 the libyan banking industry was one. Convenient sampling is used to gather the data and the main respondent of this study are auditors and loan officers of banking sector of libya. The banking system in the east of libya is edging towards collapse. Cash crises political, exposed weakness of libya banking. Service quality, private banking sector, public banking sector, libya, banking service quality, service quality measurement.
The university of gloucestershire has a vibrant academic community where creative research and cuttingedge scholarship are conducted at a high level. This shows that previously the banking sector in libya was a local, heavily regulated. Quality of banking services in libyan banks research repository. Corporate governance, auditor quality and the reliability of. The eastern libyan commander, khalifa hafta, has mobilised the biggest military. To collect the data a questionnaire were distributed to credit officers and analysts in all stateowned. The aim of this study is to measure and know the quality of electronic banking services provided by libyan commercial banks using the service quality measurement model servqual.
These oil revenues and a small population have given libya one of the highest nominal per capita gdp in africa after 2000, libya recorded favourable growth rates with an estimated 10. This paper makes a useful contribution as there are only a few studies dealing with the assessment of service quality in banking sector of libya. Manage the governments reserves of gold and foreign exchange. However, the cbl enjoys the status of autonomous corporate. The bank may accept deposits from, and provide banking services to.
Issue the libyan currency and maintain its stability within libya and abroad. The cbl falls under the secretary for finance for the government of libya. In 2005, the central bank of libya played a key role in organizing banks and restructuring capitals inducing them to look for investment opportunities in order to. The libyan audit bureau says that the libyan banking sector proved weak when faced with the. The transactions that these banks manage on behalf of the bcb and the tobruk government are accounted on the bcbs manual accounting. This research uses a casestudy approach using an interpretive perspective to develop a knowledge management implementation kmi framework for the libyan banking industry. The study concluded that there is a clear decline in the quality of e banking services provided by libyan commercial banks.
The impact of information and communication technology on the. Dynamics impacting libyan customers to adopt mobile. The banking sector in libya consists of stateowned, private and foreign share banks, and the commercial banks are still dominated by traditional stateowned banks who own the largest part of the total assets of the banking sector in libya as can be seen in figure. They connected to swift in 2001 and no longer need to use libyan arab foreign bank to. The questionnaire has been personally administered on a sample size of 150 bank customers. Measuring the quality of electronic banking services in. Since then, the banking industry in libya has experienced many fundamental changes alwaddan, 2005.
The history of banking activities in libya can be traced back to 1868. The impact of information and communication technology. All economic sectors are stagnating, including the banking sector. Between february and june 2019, the benghazi central bank printed in russia about 4. A knowledge management implementation framework for the. The objectives of the study are to extend the evidence linking external corporate governance mechanisms to auditor quality, examine the relationship between internal corporate governance practices and auditor quality. The world bank held its fifth libyan economic dialogue in june 2019. The bank has held four sessions on the libyan economy, attended by libyan economists, members of public administration, and private sector representatives. In his report on libyas banking sector, published yesterday by the legatum institute, brehon advisorys mark dempsey points to, among other things, the need to create employment opportunities in the private sector. The economy of libya depends primarily on revenues from the petroleum sector, which represents over 95% of export earnings and 60% of gdp. Libyan banking services are still complicated and use outdated systems in their operation. These currency smugglers managed to drive the value of the dinar down from 6 to 10 dinars per u. The libyan investment authority lia was established in march 2007 and its operational framework has been enhanced broadly in line with staff. Banking sector and financial reporting regulation in libya the current structure of the libyan banking sector is comprised from different types of banks.
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