Islamic banking and finance is considered a novel way of conducting financial matters for growth and social inclusion. It has expanded in an unprecendented manner since its initial appearance in the mid-1970s. Since then, Islamic banking has earned recognition worldwide which has paved the way for a rapid growth in the Islamic banking services industry. With this background, this study focuses on the potential for Islamic banking in Libya. Since the 1970s the Libyan banking sector has witnessed remarkable changes especially after the state introduced the nationalisation programmes and socialist system. Under public ownership, the banking industry, however, has underperformed due to various problems such as the high level of non-performing loans. Therefore, the state has recently initiated a reform and deregulation policy to enhance the performance of the sector. This study aims to analyse the developments which have taken place in the Libyan banking sector not only to evaluate performance but also to discuss the reasons for underperformance. However, importantly, this research explores the potential demand for Islamic financial services in Libya by also questioning relevant issues. The methodology of the study includes a literature review, data collection, analysis of available banking system statistics and semistructured interviews with experienced bankers. The empirical research in this study is based on a survey conducted in the city of Benghazi, one of the largest financial centres in the country. The empirical findings on Libyan banking demonstrate that the sector is plagued by problems which weaken its con 1 to the economy. The second part of the empirical results proved that there is a significant demand for Islamic banking in Libya. Although the respondents and interviewees were less familiar with Islamic banking products, services and principles, the study has proved Islamic banking in Libya is developing tangible roots.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:494036 |
| Date | January 2008 |
| Creators | Kumati, Amal |
| Publisher | Durham University |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://etheses.dur.ac.uk/1341/ |
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