Effect on the volume of bank credit within Libyan commercial banks

Abstract

 The primary objective of this study is to investigate the influence of inflation on the volume of bank credit within Libyan commercial banks, employing statistical analysis such as the Pearson correlation coefficient and simple regression coefficient. In pursuit of this objective, a singular hypothesis was formulated. The study encompasses seven notable Libyan commercial banks: (Jumhouria Bank, Al-Wahda Bank, National Commercial Bank, North African Bank, Mediterranean Bank, Bank of Commerce and Development, and Sahara Bank). The selection of these banks is based on the availability of comprehensive data of the banks in question, as well as their substantial credit volumes spanning the years 2011-2018, Data aggregation relied on the financial statements of the aforementioned banks and publicly accessible reports issued by the Central Bank of Libya. The analytical framework adopted herein is predominantly descriptive in nature, The findings yielded by this research indicate that inflation exhibited no significant impact on bank credit volume throughout the study duration spanning from 2011-2018. Consequently, it is recommended that Libyan commercial banks carefully consider strategies to manage bank credit volumes. Furthermore, emphasis is placed on the imperative for the Central Bank of Libya to adeptly leverage both direct and indirect mechanisms at its disposal to effectively modulate the volume and quality of banking credit