The impact of banking supervision on improving the performance of Libyan Islamic banks: The Libyan Islamic Bank as a case study.

Abstract

The study aimed to examine the impact of banking control on the performance of Libyan Islamic banks and to review the case of the Libyan Islamic Bank as a model for study. It also showed the extent to which the various types of regulatory bodies contributed to the performance of the Libyan Islamic Banks. The study also outlined the most important criteria used in judging performance to identify the most important obstacles that the Libyan Islamic Banks faces in the field of banking internally and externally. The study relied on a statistical descriptive method to analyze the data collected through the questionnaire Where (183) questionnaires were distributed, and the researcher recovered (180) questionnaires The statistical analysis program "SPSS" was used to analyze the data, to show the impact of banking control on the performance of the Libyan Islamic Banks The study concluded the following:

There is a positive impact of internal control (Technical control - Sharia control) in improving the performance of Libyan Islamic banks.

There is a positive impact of external oversight (central oversight - international oversight) in improving the performance of Libyan Islamic banks.

There is a positive impact of addressing and correcting deviations in improving the performance of Libyan Islamic banks.

The message also emphasized the special nature of Islamic banks and the relative novelty of the idea in Libya, as Islamic banks are considered a legitimate alternative to traditional banks operating within the country, in terms of working to strengthen and develop the Islamic financial industry and using financial tools and products compatible with the provisions of Islamic Sharia.

The study recommended the necessity of having a comprehensive and effective internal supervisory system capable of detecting and correcting deviations in Libyan Islamic banks. It also emphasized the necessity of adhering to the reports of Sharia supervisory bodies and implementing their content, in addition to adhering to the requirements of international institutions and reports of external parties regarding the soundness of the financial position and solvency of Libyan Islamic banks. It recommended the need to focus and work on research, education and training in all areas of Islamic banking to keep pace with global banking development.