The impact of implementing Basel III & II requirements on modernizing the Libyan banking sector

An analytical study on the Libyan banking sector

Abstract

This study aimed to test the existence of a relationship between the application of Basel standards and the level of modernity of the Libyan banking sector. This study started with a review of the profile of the Libyan banking sector. It was moved to follow the decisions of the Basel Committee and the study hypotheses were tested on the sample, And Misratah and 357single. The hypotheses of the study were tested using the descriptive analysis method and the signal test through the statistical program SPSS. The study concluded with a number of results: 1. The results of the study (based on the correlation coefficient) indicated a positive and statistically significant relationship between the implementation of the Basel II and III standards and the strengthening of the capital adequacy indicators and performance indicators for the Libyan banking sector as well as the enhancement of the use of methods and techniques for measuring and managing risks. In the positive direction with improving the quality of the level of services in the Libyan banking sector, and activating good governance. 2. The results of the study indicate that there is a statistically significant relationship between the application of Basel standards, strengthening capital indicators and performance indicators, enhancing the use of risk management measurement techniques and techniques, and improving the level of services and activating good governance in Libyan banks. 3. The results of the hypothesis test indicated a statistically significant relationship between the application of the Basel standards and the modernization of the Libyan banking sector. Accordingly, the study recommended working to raise the level of financial performance, with the need to adopt good investment policies that would raise the level of performance in Libyan banks.