Assessing the Supervisory Procedures of the Central Bank of Libya over Commercial Banks and their Effectiveness in Enhancing the Banking Security Level
DOI:
https://doi.org/10.37375/abhat.v18i1.3940Keywords:
Banking Supervision, Central Bank, Banking securityAbstract
This study aims to assess the supervisory procedures and oversight measures implemented by the Central Bank of Libya for commercial banks, as well as to verify their effectiveness in reducing banking risks. To achieve this objective, the study adopted a deductive approach in designing the study plan and its hypotheses. The procedural approach, based on a field survey strategy, was also employed. Data was collected using a questionnaire distributed to all Libyan commercial banks. The results revealed that the surveyed commercial banks adhere to and receive both desk-based and field-based supervisory procedures issued by the Central Bank. These results were statistically significant. Furthermore, the study's findings strongly suggest the importance of the Central Bank's supervisory procedures for commercial banks in mitigating various banking risks. The study recommended further efforts to develop the information technology infrastructure and communication networks of banks, which would help the central bank implement the necessary regulatory and supervisory measures over commercial banks to protect them from potential banking risks.
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