Applications of Good Governance in the Libyan Banking Sector

Abstract

The Libyan banking sector, like many other sectors, suffers from the widespread phenomenon of administrative and financial corruption. This study aims to identify the role of governance in reducing administrative and financial corruption within commercial banks in the Libyan economy. The study concluded that the absence of effective oversight over institutional performance, the weakness of financial and administrative regulatory bodies, as well as political and security instability, are among the key reasons for the failure to successfully implement governance across various economic sectors, particularly the banking sector. Therefore, efforts must be made to raise awareness of the importance of corporate governance principles in Libyan banks and to activate the oversight role in monitoring the extent of government implementation in order to ensure that corrupt individuals are held accountable and public funds are preserved.